The U.S. Department of Justice has successfully concluded its investigation into the xDedic dark web marketplace, announcing on Friday that it has dismantled the multinational criminal organizations associated with it. A total of 19 individuals, including administrators, site developers, and buyers, now face charges as a result of the investigation. xDedic Marketplace, known for illegally selling login credentials and personal information such as Social Security numbers and birthdates, was shut down by authorities in 2019. Prior to its closure, the site listed over 700,000 compromised servers for sale, impacting at least 150,000 in the United States and around 8,000 in Florida alone.
The dark web marketplace’s reach extended internationally, with the January 2019 takedown reflecting the distributed infrastructure employed by xDedic. Authorities estimated that the marketplace had contributed to over $68 million in global fraud, as cybercriminals utilized stolen data for various illegal activities, including tax fraud and ransomware attacks. Since the takedown, the U.S. Department of Justice collaborated with law enforcement agencies in Belgium, Ukraine, Europol, the Dutch National Police, and the German Bundeskriminalamt. This collaboration resulted in the extradition of suspects to the United States for trial, showcasing the global effort to address cybercrime and prosecute those involved.
The investigation unveiled the meticulous operational security practices of xDedic administrators, who operated the website across a widely distributed international network and employed cryptocurrency to conceal the marketplace’s underlying servers and the identities of its administrators, sellers, and buyers. Notable figures among those charged include Alexandru Habasescu, the lead developer from Moldova, and Pavlo Kharmanskyi, responsible for advertising, payments, and customer support from Ukraine. The coordinated efforts also led to the capture and sentencing of individuals like Dariy Pankov, a Russian national and top seller, and Allen Levinson, a Nigerian national engaged in false tax returns, showcasing the diverse range of criminal activities associated with the marketplace.
The FBI, IRS, DOJ, and Department of Homeland Security played pivotal roles in leading the investigation, underscoring the significance of domestic and international cooperation in combating cybercrime. U.S. Attorney Roger B. Handberg highlighted the substantial contribution of foreign law enforcement agencies from countries such as Belgium, Georgia, Germany, Poland, Spain, the United Kingdom, Romania, Switzerland, Estonia, Latvia, Bulgaria, Ukraine, Lithuania, and Moldova to the success of the investigation.
