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Feds Shut Down Marketplace for Selling Access to Hacked Servers

US federal investigators pull the plug on xDedic, a marketplace that sold access to thousands of compromised servers. The domain for the website has now been seized and replaced with a takeover notice from the FBI.

 & Michael Kan Principal Reporter

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A black market website that let customers buy access to thousands of hacked servers across the world has been shut down.

On Monday, US federal investigators announced they had pulled the plug on xDedic, a marketplace that was promoting itself on the open internet. The website's domain has now been seized and replaced with a takeover notice from the FBI.

Law enforcement in Europe also seized xDedic's servers and detained four Ukrainians who helped run the website. The marketplace was so prolific it had sold the login credentials to over 70,000 remote servers from 170 countries, according to Ukraine's cyber authority.

"Based on evidence obtained during the investigation, authorities believe the website facilitated more than $68 million in fraud," the US Department of Justice said in a statement.

For years, xDedic functioned as a platform for hackers to sell access to servers they had breached. These servers included those owned by business, governments, universities, and hospitals. With such access, buyers could pilfer all the valuable information inside, such as credit card numbers or other personal data. They could also use the hardware to propagate new hacking schemes, like sending spam email or spreading ransomware.

In 2016, security firm Kaspersky Lab first reported the existence of xDedic, which at the time was offering server sales for as little as $6. Many of the servers were likely breached after hackers guessed remote login credentials through simple trial-and-error.

"Users of xDedic could search for compromised computer credentials by criteria, such as price, geographic location, and operating system," Europol said. The marketplace also helped protect buyers and sellers identities by facilitating transactions with the virtual currency Bitcoin.

However, the shutdown of xDedic may help authorities unmask who was buying and selling on the website. Ukrainian authorities detained four suspects behind the marketplace and seized 18TB worth of data connected to xDedic, which they plan on examining.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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