The Organization for Security and Co-operation in Europe (OSCE) has set out to teach law enforcement officers in Uzbekistan how to conduct crypto and dark web investigations. The regional body recently organized a training course for employees of the country’s security agencies in Tashkent.

Uzbekistan Police and Security Agents Attend OSCE Course on Cryptocurrencies

Representatives of Uzbekistan’s Prosecutor General’s Office, the Ministry of Internal Affairs, and the State Security Service have taken a training course on cryptocurrency and dark web investigations held by the OSCE between Oct. 17 and 21 in the capital Tashkent.

The course was organized by the OSCE Transnational Threats Department in co-operation with the OSCE Project Co-ordinator in Uzbekistan and the Academy of the Prosecutor General’s Office, the intergovernmental security body said on its website.

“Participants learned about the main concepts and key trends in the areas of internetworking, anonymity and encryption, cryptocurrencies, obfuscation techniques, dark web, and Tor networks,” the announcement detailed.

They also practiced various approaches and methods for seizure of crypto assets, blockchain analysis, and darknet searching. The course was based on materials provided by the European Cybercrime Training and Education Group (ECTEG).

A new computer classroom donated by the OSCE to the Prosecutor General’s Academy was inaugurated before the course by Deputy Prosecutor General of Uzbekistan Erkin Yuldashev and Acting OSCE Project Co-ordinator in Uzbekistan Hans-Ulrich Ihm.

Crypto Training in Region to Continue Throughout Next Year

Digital technologies have been transforming the criminal landscape, noted Evgeniy Kolenko who heads the Prosecutor General’s Academy. He insisted that educating law enforcement in this field needs a long-term and systematic approach.

“Cybercrime education requires adequate equipment – both hardware and software,” added Gayrat Musaev, Head of the Academy’s Department for Implementation of Information and Communication Technologies and Information Security. Musaev also praised the new dark web lab.

The OSCE course is the first of this kind in Uzbekistan within the second phase of the “Capacity Building on Combating Cybercrime in Central Asia” project funded by the U.S., Germany, and South Korea. Similar training activities will continue across the region throughout 2022 and 2023.

This year, the government in Tashkent has been taking steps to more comprehensively regulate Uzbekistan’s crypto sector. In the spring, President Shavkat Mirziyoyev issued a decree providing definitions for terms like crypto assets and exchange. New registration rules for crypto miners were presented in June and earlier in October, Uzbekistan introduced monthly fees for crypto companies.

Do you think law enforcement authorities in Central Asia will continue to increase focus on the crypto space? Share your thoughts on the subject in the comments section below.

Law enforcement agencies in Germany have targeted Hydra, a leading darknet market (DNM). As part of an operation conducted with U.S. support, the German police were able to establish control over the servers of the Russian-language platform in the country and take down its website.

Investigators Hit Hydra in Germany, Confiscate Millions in Crypto

Hydra Market, one of the largest marketplaces on the darknet, has been shut down by German authorities which seized its server infrastructure. According to an announcement by the Federal Criminal Police Office (BKA), law enforcement agents also confiscated bitcoin worth around €23 million ($25 million). The following message appeared on Hydra’s website on Tuesday:

BKA carried out the raid together with the Central Office for Combating Cybercrime (ZIT) at the Public Prosecutor’s Office in Frankfurt which is leading the investigation against Hydra’s operators and administrators. They are wanted for running illegal online platforms facilitating the trade of drugs and money laundering.

The German police noted that Hydra had been active since at least 2015 before the seizures which came after extensive investigations by the BKA and ZIT. They started in August last year and were conducted with the participation of several U.S. agencies.

The darknet marketplace, which was accessible via the Tor network, was targeting Russian speakers. It had around 17 million customers and over 19,000 registered sellers, the press release detailed. Besides banned substances, these also offered stolen data, forged documents and digital services.

Hydra became a major darknet market after overtaking another Russian platform, DNM Ramp. According to the data compiled by the blockchain forensics company Chainalysis, the region of Eastern Europe sends more digital currency to darknet marketplaces than any other region.

Washington has been alleging Moscow’s involvement with malicious cyber actors like DNMs, ransomware groups and other crypto-related crime. In September, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the Russia-based crypto broker Suex which is believed to have received more than $20 million from darknet markets like Hydra.

The Treasury Department has imposed sanctions against Hydra and a crypto exchange called Garantex. The trading platform, which has been operating mostly out of Russia, is suspected of processing over $100 million in transactions linked to illicit actors and darknet markets, including $2.6 million from Hydra.

Meanwhile, the U.S. Department of Justice announced criminal charges against a Russian resident, Dmitry Pavlov, for conspiracy to distribute narcotics and conspiracy to commit money laundering. The 30-year-old Pavlov is allegedly the administrator of Hydra Market’s servers.

German law enforcement officials think that Hydra was likely the darknet market with the highest turnover globally. BKA and ZIT have estimated that its sales reached at least €1.23 billion in 2020 alone. They also noted that the investigations were hampered by the platform’s own ‘Bitcoin Bank Mixer’ service.

Do you think other darknet markets will be targeted after Hydra? Let us know in the comments section below.