The dark web has long been a sanctuary for illicit activities around the world, with illegitimate businesses operating in secrecy and using cryptocurrencies to facilitate anonymous and often untraceable transactions.
In a recent investigation, we uncovered a black market operation, which has over 200GB of CSAM (Child Sexual Abuse Material) available for download, all for a price under $50 USD. The content includes children reported to be as young as eight years old. According to research from the University of Edinburgh, technology-facilitated abuse is experienced by approximately 300 million children annually. Additionally, the global market size for the sale of CSAM is estimated at multiple billions of US dollars annually.
Wallet Details
The Nominis research team traced the transactions linked to these entities, identifying their Bitcoin (bc1q********wmgj), Ethereum (0x32********dc62), , Solana (FEtN********8YCL), Ripple (r3rf********drb3), Dogecoin (DAxE********xt9Q), and Litecoin (ltc1********mtnd) wallet addresses. The oldest of these wallets date back to January, 2025, and some remain active as of August, 2026. Furthermore, one of these wallets has been traced to eight other dark web entities, five of which also contain CSAM content. Lastly, Nominis’s GEO Intelligence estimated a 99% chance that the user behind at least one of the wallets was active in Australia.
Exposure to Low-KYC Cryptocurrency Exchanges
Screening Ethereum wallet (0x32********dc62) and Solana wallet (FEtN********8YCL) exposed significant direct outgoing to a Low-KYC crypto exchange; meaning the exchange allows users to trade, deposit, and withdraw crypto with little to no identity verification.
Instead of opting to use intermediary wallets, the wallets in question transacted directly with this Low-KYC exchange. Such actions are deeply concerning. In brief, the illicit actors are able to profit from CSAM content, and in one simple step, exchange the funds seamlessly with a Low-KYC crypto exchange. The illicit actors can then spend their newly exchanged crypto, giving them easy access to the wider crypto ecosystem.
Meanwhile, others have signficant exposure to highly regulated crypto exchanges, highlighting that funds tied to CSAM sales can still reach compliant platforms. These exchanges operate under strict KYC and AML obligations, yet the funds still landed there.
The Importance of Crypto Compliance
The widespread use of cryptocurrency in CSAM activities highlights the vital importance of strong compliance measures in the crypto industry. Many regulated crypto exchanges and financial institutions implement compliance frameworks, fulfilling checks known as Know Your Customer (KYC) and Know Your Transaction (KYT) that ensure inspection and validation of the legitimacy of the wallet an organization is accepting a transaction from.
Without robust compliance frameworks, legitimate businesses risk unknowingly processing illicit funds, exposing them to legal and reputational risks. By utilising advanced threat intelligence, companies can proactively block transactions from suspicious wallets, ensuring compliance with regulatory authorities and critically, mitigating potential financial crime risks.
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Final Thoughts
Our ongoing investigation into this dark web vendor underscores the persistent challenges in combating illegal activities facilitated by cryptocurrency, while illustrating how malicious actors adapt to evade detection, requiring continuous improvements in crypto compliance efforts.
As cryptocurrency adoption continues to grow, regulatory bodies and blockchain analytics firms must work together to identify and shut down illicit operations, before they can infiltrate the mainstream financial system. Vigilance, transparency and collaboration will be key in the fight against dark web criminal enterprises.
All research content and accompanying reports are provided for informational purposes only and should not be relied upon as professional advice. Accessing these materials does not create any professional relationship or duty of care. Readers are encouraged to consult appropriately qualified professionals for guidance. We uphold the highest standards of accuracy in all the information we provide. For any questions or feedback, please contact us at contact@nominis.io.
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