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Identifying key players in dark web marketplaces

Author

Listed:
  • Elohim Fonseca dos Reis
  • Alexander Teytelboym
  • Abeer ElBahraw
  • Ignacio De Loizaga
  • Andrea Baronchelli

Abstract

Dark web marketplaces have been a significant outlet for illicit trade, serving millions of users worldwide for over a decade. However, not all users are the same. This paper aims to identify the key players in Bitcoin transaction networks linked to dark markets and assess their role by analysing a dataset of 40 million Bitcoin transactions involving 31 markets in the period 2011-2021. First, we propose an algorithm that categorizes users either as buyers or sellers and shows that a large fraction of the traded volume is concentrated in a small group of elite market participants. Then, we investigate both market star-graphs and user-to-user networks and highlight the importance of a new class of users, namely `multihomers' who operate on multiple marketplaces concurrently. Specifically, we show how the networks of multihomers and seller-to-seller interactions can shed light on the resilience of the dark market ecosystem against external shocks. Our findings suggest that understanding the behavior of key players in dark web marketplaces is critical to effectively disrupting illegal activities.

Suggested Citation

  • Elohim Fonseca dos Reis & Alexander Teytelboym & Abeer ElBahraw & Ignacio De Loizaga & Andrea Baronchelli, 2023. "Identifying key players in dark web marketplaces," Papers 2306.09485, arXiv.org.
  • Handle: RePEc:arx:papers:2306.09485
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    References listed on IDEAS

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    1. Zambiasi, Diego, 2022. "Drugs on the Web, Crime in the Streets. The Impact of Shutdowns of Dark Net Marketplaces on Street Crime," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 274-306.
    2. Manolis Galenianos & Rosalie Liccardo Pacula & Nicola Persico, 2012. "A Search-Theoretic Model of the Retail Market for Illicit Drugs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(3), pages 1239-1269.
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