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RAR files can be cracked offline.

Sure, but "password protected website" is a weird synonym for "RAR file".

It's not saying the RAR file is that. It's saying you can only get access to the file through a password-protected website on the dark web.

See my sibling comment. The article told the story slightly misworded.

The RAR file was posted on a “dark web” site. The password needing to be cracked is the one on the RAR file itself, not the site.

Source: I was at the HOPE talk he gave and also talked to Michael at the conference about it too.