Research by blockchain analysis firm Elliptic has revealed that the kingpin or kingpins of the world’s biggest illicit credit card marketplace have retired after making an estimated fortune of over $1 billion in cryptocurrency.
The “Joker’s Stash” marketplace, where stolen credit cards and identity data traded hands for bitcoin and other digital coins, ceased operations this month, Elliptic said on Friday.
Criminal use of cryptocurrencies has long worried regulators, with U.S. Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde calling last month for tighter oversight.
While terrorist financing and money laundering are top of law-enforcement concerns, narcotics, fraud, scams and ransomware are among the chief areas of illegal use of digital currencies, according to Elliptic co-founder Tom Robinson.
Joker’s Stash was launched in 2014, with its anonymous founder “JokerStash” – which could be one or more people – posting messages in both Russian and English, Elliptic said. It was available on the regular web and via the darknet, which hosts marketplaces selling contraband.
The darknet, or darkweb, is a part of the internet that isn’t visible to regular search engines, and requires a form of browser that hides a user’s identity to access.
Elliptic, whose clients include law-enforcement agencies and financial firms, estimates that JokerStash raked in more than $1 billion in profits in cryptocurrencies over the years, at current prices. Bitcoin has soared from just over $300 in 2014 to hit a record $49,000 on Friday, pulling up other coins in its wake.
The blockchain firm reached the over $1 billion figure by analysing the marketplace’s revenue and the fees it charged, and said it was at the lower end of its estimates.
In December, Interpol and the FBI seized the domain names used by the site, but it continued operating via the darknet, Elliptic said here. Cyber-security firm Digital Shadows also said in December that the darknet site remained live after the seizure.