Key Points
- The U.S. Treasury has sanctioned an Iranian individual and 49 crypto addresses related to Nemesis, a darknet drug marketplace.
- Nemesis, seized in 2024, had over 30,000 users and facilitated nearly $30 million in illegal drug sales globally.
The U.S. Treasury has imposed sanctions on Behrouz Parsarad, an Iranian national operating Nemesis, a darknet marketplace involved in the trafficking of fentanyl and other drugs.
As announced on March 4 by the Office of Foreign Assets Control, 49 cryptocurrency addresses linked to the platform have also been sanctioned.
Nemesis and its Operations
Established in 2021, Nemesis emerged as a significant hub for illegal drug sales, dealing in fentanyl and other substances.
According to the OFAC, Nemesis had more than 30,000 active users and 1,000 vendors, and facilitated the sale of nearly $30 million worth of drugs worldwide from 2021 to 2024, including to the U.S., using Bitcoin (BTC) and Monero (XMR) for payments.
“Prior to its takedown by law enforcement, narcotics traffickers and cybercriminals openly traded in illegal drugs and services on Nemesis, which was designed with built-in money laundering features.” said the OFAC.
Blockchain analytics firm TRM Labs reported “clear on-chain links between Nemesis and Chinese drug precursor manufacturers.” Funds from Nemesis vendors reportedly flowed directly to these suppliers, supporting the production of synthetic opioids.
Seizure and Aftermath
Nemesis was confiscated in March 2024 by U.S., German, and Lithuanian authorities in a joint operation. The officials seized around $102,000 in cryptocurrency assets.
However, Parsarad allegedly tried to revive the platform by reaching out to former vendors, leading to the latest enforcement action to curb illicit trade.
The clampdown on Nemesis is part of a series of similar enforcement actions against other darknet markets. TRM Labs noted that darknet marketplaces generated “over $1.7 billion in revenue” in 2024, with Russian-language platforms dominating the space and facilitating more than 97% of illicit drug sales via crypto such as BTC and TRON (TRX).
Despite law enforcement pressure causing struggles for Western darknet markets, Russian platforms thrived under low-risk conditions. TRM Labs reported that the Russian darknet ecosystem “remained stable throughout 2024, with only four out of approximately 20 marketplaces ceasing operations.”