U.S. Treasury sanctions Iranian national for operating Nemesis, a darknet drug marketplace

The U.S. Treasury has taken action against Behrouz Parsarad, an Iranian national behind Nemesis, a darknet marketplace involved in fentanyl and other drug trafficking.

The U.S. Treasury has sanctioned an Iranian national for operating Nemesis, a darknet marketplace, and blacklisted almost 50 crypto addresses tied to it.

The Office of Foreign Assets Control has also taken action against Behrouz Parsarad, an Iranian national behind the platform, and 49 cryptocurrency addresses linked to the market.

Founded in 2021, Nemesis became a big hub for fentanyl and other drug sales. According to OFAC, the platform had over 30,000 active users and 1,000 vendors and facilitated the sale of nearly $30 million worth of drugs around the world, including to the U.S.,

The market used Bitcoin (BTC) and Monero (XMR) for payments and was designed with built-in money laundering features, according to the announcement.

“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 OFAC.

According to blockchain analytics firm TRM Labs, there are "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.

Nemesis was seized in a joint operation by U.S., German, and Lithuanian authorities. Officials confiscated around $102,000 in cryptocurrency assets.

However, Parsarad attempted to relaunch the platform by contacting former vendors, prompting the latest sanctions to curb the illicit trade.

The move follows similar enforcement actions against other darknet markets.

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), according to TRM Labs.

While Western darknet markets like Hydra and DeepDotWeb faced closure and struggles due to persistent law enforcement pressure, Russian platforms like R2R and BiSS continued operating in a low-risk environment.

The Russian darknet ecosystem remained stable throughout 2024, with only four out of approximately 20 marketplaces ceasing operations, the analysis found. This resilience is attributed to the platforms' use of the Russian ruble and local payment systems, which hindered international authorities' ability to seize funds.

Moreover, the platforms' close ties to the Russian cybercrime community and a lack of cooperation from Russian financial institutions provided an environment where cybercriminals could operate with impunity.

These factors combined to create a perfect storm for the flourishing of Russian darknet markets, while their Western counterparts faced significant challenges and setbacks.

As the landscape of cybercrime evolves, so too do the methods employed by authorities to combat it. The integration of cryptocurrency within these illicit activities has presented both opportunities and difficulties for law enforcement.

Despite the difficulties posed by cryptocurrencies, authorities are actively pursuing strategies to dismantle these criminal enterprises and hold the perpetrators accountable for their actions.

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