Abacus Market, the largest Bitcoin-powered Western darknet marketplace, has gone offline in an apparent exit scam.
Its website and infrastructure, including its clearnet mirror, are inaccessible, TRM Labs said in a report on Monday. The disappearance has led TRM to believe the “operators have likely conducted an exit scam, shutting down operations and disappearing with users’ funds.”
TRM Labs said the closure could be the result of attention from law enforcement, as Abacus Market clocked a monthly record after the closure of Archetyp Market, one of the longest-running dark web marketplaces, in mid-June.
In late June, users began reporting withdrawal issues, which prompted the Abacus administrator known by the handle “Vito” to assure users that the problems were merely a result of an influx of new people and a distributed denial-of-service attack.
“This behavior was consistent with known exit scam patterns seen across other darknet markets.”
Users began fleeing in droves despite the assurance, and daily deposits dropped in the final weeks, down from an average daily deposit of $230,000 in most of June to just $13,000 daily from June 28 to July 10.
Abacus offered a wide range of illicit drugs, including stimulants, psychedelics, unlicensed pharmaceuticals, and operated a central deposit wallet that supported both Bitcoin (BTC) and Monero (XMR).
Success might have caused shutdown
Abacus was one of the top darknet marketplaces dealing in Bitcoin.
Europol shuttered one of the longest-running dark web marketplaces, Archetyp Market, on June 16, causing its users to flood Abacus, leading to its largest-ever monthly sales volume of $6.3 million in June.
A similar situation played out after ASAP Market’s voluntary closure in July 2023, with a 20% increase in Abacus’s volume compared with the month before.
Its share of the Bitcoin-supporting Western dark market ecosystem also spiked to over 70%, following ASAP’s closure and the law enforcement seizure of Incognito Market in March 2024.
TRM Labs said users typically migrate to the nearest available platform when a dark market collapses, especially when it’s a “large and reputable market.”
“Marketplaces that reach the top of the ecosystem, in terms of volume, user base, listings, and reputation, often become priority targets for law enforcement,” TRM Labs said.
During its four years of operation, Abacus generated nearly $100 million in Bitcoin sales, but TRM Labs said that’s because privacy coin Monero accounted for a large volume of sales, its actual total could be between $300 million and $400 million.
Profit and no consequences for peers
TRM Labs speculates the Abacus operators could have also “lost motivation to continue” or chose to exit the ecosystem to “preserve their freedom and financial gains.”
“Faced with the decision between profit-seeking and self-preservation, Abacus’s admins likely chose the latter in light of Archetyp’s seizure and the surge in new users that elevated Abacus’s profile.”
Previous administrators of other dark market operators who voluntarily exited, such as those at ASAP Market and Agora Market, or conducted exit scams, such as Evolution Market, managed to escape without being caught by law enforcement, according to TRM Labs.
Related: Crypto crime goes industrial as gangs launch coins, launder billions — UN
Darknet marketplace may already be seized
TRM Labs said there is also a chance that law enforcement covertly seized the marketplace and are staying quiet about the operation while they compile evidence and track down those involved.
However, the firm also said the administrator of the dark web discussion forum Dread, who was in close contact with the Abacus team, has cast doubt on law enforcement being behind the marketplace’s disappearance.
“In some cases, such as Nemesis Market’s exit, official seizure notices have appeared months after a DNM [darknet market] has gone offline,” TRM Labs added.
Magazine: Coinbase hack shows the law probably won’t protect you: Here’s why
