The chart below shows this counterparty decline, as well as a drop in crypto flows across the fraud shop ecosystem. These actions were part of a coordinated effort among US government agencies and foreign counterparts to combat Russian illicit finance. In September 2024, the US Secret Service’s Cyber Investigative Section, Netherlands Police, and the Dutch Fiscal Intelligence and Investigation Service (FIOD) seized web domains and infrastructure linked to UAPS, PM2BTC, and Cryptex. In addition to various benzodiazepines, stimulants, and psychedelics, one longstanding China-based research chemical manufacturer also sells nitazenes.
- Earlier in May, Europol announced the arrest of 288 individuals connected to drug trafficking on Monopoly Market.
- A screenshot of the marketplace shared by the DOJ in the statement showed cocaine available for bulk purchase from JoyInc on Drughub, a dark web site.
- Data seized in the action will be used in the ongoing investigations against platform sellers and users, potentially uncovering their identities and organizing arrests.
- Operation Deep Sentinel is the latest international law enforcement collaboration against cybercrime, shutting down Archetyp – one of the largest dark web drug marketplaces.
- A moderator and six prominent vendors were arrested simultaneously in other countries, and officers seized assets worth about $9 million.
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At its peak, Nemesis counted over 150,000 user accounts and 1,100 seller accounts worldwide, with about 20% of them being based in Germany. John is a veteran Chicago journalist with experience in print, television and online platforms and has been with the CBS Chicago team since 2007. Prosecutors said Pavey and Hamilton told customers about features designed to thwart counterfeit detection tools and make counterfeit currency appear to be genuine currency. Usually these products are sent to the buyer by post and money transferred to the seller through the escrow system. The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.
Fraud Shop Revenues Decline In 2024
At the time, German authorities arrested the site’s alleged operators and two of its most prolific vendors. Europol confirmed to WIRED today that it was also able to recover the Wall Street Market backend server, providing investigators with an invaluable trove of evidence. The arrests were part of an effort by federal authorities to address “the growing number of illicit vendors operating on the darknet providing large quantities of harmful substances to thousands of people across the United States,” according to the Justice Department. Federal prosecutors have accused the men of operating 10 virtual storefronts on 17 different dark web marketplaces from September 2018 through February, the department said in a statement.
Focusing solely on dark web markets may overlook broader digital harms occurring on mainstream platforms. THE HAGUE — Authorities in the U.S. and Europe arrested nearly 300 people, confiscated more than $53 million and seized a dark-web marketplace as part of an international crackdown on drug trafficking that officials say was the largest operation of its kind. Archetyp Market facilitated a reported minimum of 250 million euros (about $290 million) in drug transactions over five years, with over 600,000 users, 3,200 vendors, and 17,000 listings. Authorities seized assets valued at 7.8 million euros, including cryptocurrency and luxury goods, and deployed around 300 officers across multiple countries during the operation. “With this takedown, law enforcement has taken out one of the dark web’s longest-running drug markets, cutting off a major supply line for some of the world’s most dangerous substances,” said Jean-Philippe Lecouffe, Europol’s Deputy Executive Director of Operations, on Monday.
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This “market cannibalization” has further destabilized the landscape, pushing vendors and buyers to seek refuge in smaller, more secure spaces. Market data from blockchain analysis firm Chainalysis shows that about $4 million worth of Bitcoin came from darknet markets in the past week alone. According to the investigation, Incognito Market was an online narcotics bazaar that existed on the dark web. Since that time, and through its closing in March 2024, Incognito Market sold more than $100 million in narcotics — including hundreds of kilograms of cocaine and methamphetamines. Incognito Market was available globally to anyone with internet access and could be accessed using the Tor web browser on the dark web. As Pharoah — the leader of Incognito market — Lin supervised all of its operations, including its employees, vendors and customers, and had ultimate decision-making authority over every aspect of the multimillion-dollar operation.
How Simple IAM Control Could Have Prevented Major Cyber-Attacks
Operation RapTor was a global, coordinated effort by law enforcement in the United States, Europe, South America, and Asia to disrupt fentanyl and opioid trafficking, as well as the sales of other illicit goods and services, on the darknet, or dark web. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, reflected in the statistics announced today. In furtherance of Operation RapTor and in its first action as a JCODE member agency, the Office of Foreign Assets Control (OFAC) additionally sanctioned Iranian national Behrouz Parsarad for his role as the founder and operator of Nemesis Market following seizure of the market. Parsarad was also indicted by a federal grand jury in the Northern District of Ohio on drug trafficking charges related to the illegal business he ran on the dark web.
The suspected operator of the site — a 30-year-old German national — was arrested at his home in Barcelona. Authorities believe the man, who allegedly used the pseudonym ASNT, ran the platform as part of an organized criminal group trafficking large quantities of narcotics. Investigators seized assets worth approximately €7.8 million (about $9 million), including luxury vehicles and cryptocurrency. International law enforcement agencies have shut down one of the longest-running and most prolific drug marketplaces on the dark web, known as Archetyp Market, and arrested its alleged administrator.
Treasury International Capital (TIC) System
Listings included offerings of prescription medication that was advertised as being authentic but was not. For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be oxycodone, which were purchased on Incognito Market. Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills. After the UAPS infrastructure takedown, we observed a swift decline in on-chain activity from UAPS counterparties, indicating that many fraud shops relied on this infrastructure to process customer payments.
Darknet Market Vendors Evolve Their On-chain Behavior
Historically, DNMs have usually cashed out their funds at centralized exchanges (CEXs). Although CEXs remain a stable destination in the DNM ecosystem, the pattern of sending funds to them shifted in 2024, as illustrated in the chart below. Last year, DNM vendors sent a significantly higher portion of their funds to DeFi than they did historically. Throughout 2024, DNM vendors also sent far more value to personal wallets and stored funds on-chain.
The Chainalysis 2025 Crypto Crime Report
Authorities arrested the alleged administrator, a 30-year-old German national, in Barcelona, while enforcement actions in Germany and Sweden targeted one of the site’s moderators and six of its highest-volume vendors. This operation led by the German authorities marks the end of a criminal service that enabled the anonymous trade in high volumes of illicit drugs, including cocaine, MDMA, amphetamines, and synthetic opioids. The platform’s endurance, scale and reputation within the criminal community place it alongside now-defunct darknet markets such as Dream Market and Silk Road, both notorious for their role in facilitating online drug trafficking. Archetyp Market arrived online in 2020 and grew into a significant hub for online drug trafficking. Until this month, it had evaded the law enforcement operations that took down other major dark web marketplaces.
IKlad.biz and Klad.cc, shown in the chart above, are examples of those infrastructure providers. While these outfits are not traditional DNMs, their success highlights how drug vendors are scaling their operations throughout Russian-speaking countries. In spite of Hydra Market’s disruption in 2022, former Hydra affiliates still found operating in today’s DNMs rely heavily on these infrastructure providers. Last December, a Russian court imposed a life sentence on Stanislav Moiseyev, Hydra Market’s suspected founder and operator, although the Moscow prosecutor’s office did not publicly tie the guilty verdict to Hydra. The court also sentenced fifteen accomplices to anywhere from eight to 23 years in maximum-security penal colonies. The action built upon the previous takedowns of dark web marketplaces like Kingdom Markets, Incognito, Nemesis, Bohemia and Tor2Door.
Down in California, two men were handed stiff prison sentences of 17 and 15 years for peddling fentanyl-laced pills to over 1,000 people through darknet sites. This massive undertaking stretched across four continents, with investigators working together in countries like the United States, the United Kingdom, Germany, Brazil, and South Korea. Officials announced they recovered over two metric tons of drugs, a haul that included a hefty 144 kilograms of fentanyl or fentanyl-laced substances, alongside some 180 firearms.
