Stanislav Moiseev, the founder of Hydra, once the world’s largest darknet marketplace, has been sentenced to life in prison by a Moscow court. Alongside him, 15 accomplices received sentences ranging from 8 to 23 years for their roles in the criminal operation.
Massive Illegal Enterprise
Hydra operated as a darknet market and crypto mixing service, reportedly processing over $5 billion in cryptocurrency transactions during its run from 2015 to 2022. It was notorious for facilitating illegal activities such as the sale of stolen credit card data, counterfeit currencies, and fake identification documents.
The Moscow Regional Court found Moiseev and his associates guilty of organizing a criminal enterprise and producing and distributing psychotropic drugs. In addition to their prison sentences, Moiseev was fined $38,100 (4 million rubles), while his accomplices were collectively fined $152,400 (16 million rubles). Properties and vehicles linked to the convicted were seized as part of the sentencing.
All the convicts will serve their sentences in strict-regime correctional colonies, according to Russian state-owned news outlet TASS.
Hydra’s Global Impact
At its peak, Hydra accounted for 80% of all darknet-related cryptocurrency transactions in 2021, according to the U.S. Department of Justice. Between 2018 and 2020, its cryptocurrency volumes surged 624%, highlighting its increasingly sophisticated operations.
In April 2022, German authorities dismantled Hydra, seizing its Bitcoin holdings and servers located in Germany. They reported the platform had amassed 17 million customers and 19,000 vendor accounts. German law enforcement also confiscated nearly a ton of narcotics and psychotropic substances during the raid.
Hydra’s History of Investigation
Russia’s Ministry of Internal Affairs began investigating Hydra in 2016, culminating in this landmark case. The Hydra members sentenced include Alexander Chirkov, Andrei Trunov, Evgeny Andreev, Ivan Koryakin, and several others. The group’s sentences are still subject to appeal.
Despite Hydra’s shutdown, darknet marketplaces remain highly active. A report from Chainalysis earlier this year revealed that darknet markets generated $1.7 billion in revenue in 2023, surpassing 2022 levels even in Hydra’s absence.
