Sheep Market Scam – Welcome

Sheep Market Scam – Welcome

Welcome to sheepmarketscam.com – this site used to exist for one purpose only – to expose the fraud that the now defunct Sheep Marketplace perpetrated on its users. However, that long and bitter saga is now more or less over, and it’s definitely old news, so we decided to try and repurpose this site into a more general news site about cryptocurrencies and tech in general (with a focus on stuff that doesn’t get covered as much – privacy, anonymity, the dark web, etc. )

As a nod to what this site used to be, for our first post, we’ll talk about what happened with the (aptly named) Sheep Marketplace, why we were outraged, and what happened since the marketplace and its owners disappeared into the ether.

The Sheep Marketplace was an online marketplace in the dark web, kind of similar to the now-infamous Silk Road. I don’t need to go over what stuff was bought and sold on this marketplace – if you’re reading this blog post and you haven’t been in a coma for the past 3 years, you’ll have heard of the Silk Road, and Sheep Marketplace was basically pretty similar to it.

Basically, after Silk Road got shut down for the first time, Sheep Marketplace popped up, and a lot of users migrated over. All was well for a while – the number of users grew, transactions took place, and generally people were happy with the new marketplace. Then, near the end of 2013, the marketplace started acting up. The owners/administrators of the site blocked Vendors (sellers) from withdrawing their bitcoins. Now, with the amount of business that goes on in a large marketplace like this, the amount of bitcoins that were blocked built up pretty quickly. People started getting worried and asking questions.

Then, all of a sudden, the forums (where a lot of the question asking and discussion was taking place) was shut down. A few days later, the entire marketplace was closed. There was a note left on the site, explaining that the missing BTC was stolen by a Vendor who found an exploit in the site. Both buyers and Vendors who use the marketplace didn’t believe this explanation.

When the marketplace shut down, vendors and buyers lost about 96k btc in aggregate (at the time, this added up to more thanĀ 100million USD) – probably one of the largest web related heists/scams ever. A number of reddit users then attempted to track down exactly where the money went – and this went on for a while, like a high speed car chase through the tubes of the internet. We’re unsure what eventually happened, or whether or not the scammer was caught or not. What we will say is that a lot of people who participated in the marketplace dealt in illegal and illicit goods – and our guess is that it’s not entirely wise to go and piss of an entire marketplace full of people who are, by the very definition of the word, criminals.

So, that’s the history of the site. From now on, we’re going to move forward. Stay tuned for all the latest news on the dark web, crypto currencies, and tech in general.

If you want to read a play-by-play of what happened with Sheep market, go read this article