On March 10th, several days after Incognito Market was assumed to be shut down or no longer be processing transactions, the site posted a message to its homepage that reads as follows:
”Expecting to hear the last of us yet? We got one final little nasty suprise for y'all. We have accumulated a list of private messages, transaction info and order details over the years. You'll be surprised at the number of people that relied on our "auto-encrypt" functionality. And by the way, your messages and transaction IDs were never actually deleted after the "expiry"...”
”SURPRISE SURPRISE !!! Anyway, if anything were to leak to law enforcement, I guess nobody never slipped up. We'll be publishing the entire dump of 557k orders and 862k crypto transaction IDs at the end of May, whether or not you and your customers' info is on that list is totally up to you. And yes... YES, THIS IS AN EXTORTION !!! As for the buyers, we'll be opening up a whitelist portal for them to remove their records as well in a few weeks.”
”Thank you all for doing business with Incognito Market”
Exit scams are not uncommon on dark web markets, but this one is particularly large and openly threatening compared to most. Incognito Market requires the loading of cryptocurrency to a site-based wallet, which can then be used for in-house transactions only. All cryptocurrency on the site was seized from user’s wallets, estimated to be anywhere from $10 million to $75 million. After seizing the cryptocurrency wallets of all of the marketplace’s users, the site now openly explains that it will publish transactions and chat logs of users who refuse to pay an extortion fee. The fee ranges from $100 to $20,000, a volume based 5 tier buyer/seller classification.
Incognito Market also now has a Payment Status tab, which states ”you can see which vendors care about their customers below.” and lists the some of the market’s largest sellers. Sellers which have allegedly paid the extortion fee to not have their transaction records released are displayed in green, while those who have not yet paid are displayed in red.
Additionally, in a few weeks the site claims it will have a “whitelist portal” which would allow buyers to wipe their transactions and re-encrypt chat records.
Whoever is behind the website must be extremely, extremely confident in their anonymity, already working with government agencies, or both, because a bounty on this person is likely worth millions.
And also we super promise that even though we have a bounty of probably millions on our heads right now that we will totally be honest with your extortion transaction and not only not leak your data to the only people (govt agencies) who will care about protecting us, but also we super promise to permanently delete your data. We also super promise to delete our backdoor key to the site-wide auto encryption so any transaction and chat data which already exists will be inaccessible forever.
To be fair anyone who’s foolish to use an on-site encryption feature is foolish. Almost every basic deep web guide explicitly says to use your OS’ pre-downloaded encryption apps and to never trust a site’s encryption.
I mean yeah of course, but it tracks 100%. People who already think they are smart for using the dark web and crypto would many times be the exact people who think they’ve already taken adequate precautions. A learned fool is more of a fool than an ignorant fool.