Stanislav Moiseev, the founder of the Hydra darknet market, has been sentenced to life in prison for running a multi-billion dollar crime market on the dark web.
On December 2, the Moscow regional court sentenced Moiseev, the mastermind behind Hydra and the famous cryptocurrency mixing service, to life in prison. Moiseev and 15 accomplices were found guilty of organizing a criminal community, producing and selling stimulants and drugs. Other accomplices received sentences ranging from 8 to 23 years in prison.
In addition to the prison sentence, Moiseev was fined $38,100, while his accomplices were ordered to pay a total of $152,400. All assets related to the case have been seized. According to information from the TASS news agency, this criminal group will serve their sentences in correctional facilities with strict detention conditions.
The trial of Hydra. Source: TASS
Hydra was the largest darknet market, accounting for 80% of cryptocurrency transactions related to the darknet market in 2021. From its launch in 2015 until its closure in 2022, Hydra processed over $5.2 billion in cryptocurrency, according to the U.S. Department of Justice.
This darknet market is notable for its activities in trading stolen credit card data, counterfeit money, and fake identification documents. Reports from Flashpoint and TRM Labs indicate that the volume of cryptocurrency transactions on Hydra surged by 624% annually from 2018 to 2020, as criminal activities became more sophisticated.
In April 2022, the German authorities dismantled Hydra, seizing servers and a large amount of Bitcoin located in Germany. This agency also reported that Hydra had 17 million customers and 19,000 seller accounts, while seizing nearly a ton of drugs and stimulants. It is known that the Russian Ministry of Internal Affairs has been investigating Hydra since 2016.
The sentences for Moiseev and his accomplices mark a significant victory in the fight against cybercrime and money laundering through cryptocurrency. However, a report from Chainalysis earlier this year showed that darknet markets continue to thrive, generating at least $1.7 billion in revenue in 2023, even higher than in 2022 when Hydra was shut down.