The U.S. Office of Foreign Assets Control (OFAC) has just imposed sanctions against Behrouz Parsarad, an Iranian citizen alleged to be the mastermind behind the Nemesis darknet marketplace. According to OFAC, Parsarad has full control over this platform, including cryptocurrency wallets related to illegal activities.
The Nemesis Darknet Marketplace and Parsarad's Role
Nemesis is one of the largest darknet marketplaces, where transactions of illicit substances, counterfeit documents, and cyber attack tools take place. Although U.S., German, and Lithuanian authorities dismantled and seized Nemesis's servers in March 2024, OFAC stated that Parsarad continues to contact former partners to rebuild this platform.
According to reports, Parsarad benefits from each transaction on Nemesis, with total revenue of nearly $30 million from drug trafficking between 2021 and 2024. This darknet marketplace has over 30,000 users and 1,000 suppliers, including transactions from the United States.
Bradley T. Smith, acting Under Secretary of the Treasury for Terrorism and Financial Intelligence of the United States, stated that Parsarad not only manages Nemesis but is also seeking to restore this platform. "Parsarad has built and continues to strive to re-establish a safe environment for the production, sale, and transportation of illegal drugs such as fentanyl and other synthetic opioids," Smith emphasized.
Financial System and Illicit Cash Flows
The OFAC sanctions target 44 Bitcoin addresses and 5 Monero addresses linked to Parsarad. Research from Chainalysis reveals that Parsarad's wallets received approximately $850,000, but this value rose to $1.6 million before being dispersed to centralized exchanges for cashing out.
According to Ari Redbord, Global Policy Director at blockchain intelligence platform TRM Labs, Nemesis is not only a drug marketplace but also supports cybercrime activities. "Nemesis facilitated the sale of counterfeit documents and cyber attack tools, enabling criminals to hijack online accounts and personal information of victims," Redbord stated.
Notably, TRM Labs discovered a direct connection between Nemesis and chemical manufacturers in China. "Funds from Nemesis have been directly transferred to Chinese precursor chemical suppliers, who provide raw materials for synthetic drug production," Redbord emphasized.
Operation to Crack Down on Cybercrime
Although Nemesis is a large darknet platform, it is still much smaller than its predecessors. For example, Hydra Market, the Russian darknet marketplace that was taken down in 2022, had up to 17 million users and revenue of up to $5 billion.
The sanctions against Parsarad come amid the U.S. government and its allies intensifying the fight against cryptocurrency crime. Europol, the German Federal Police (BKA), and the UK National Crime Agency (NCA) have coordinated to dismantle major darknet markets such as Hydra Market (2022), Monopoly Market (2023), and Nemesis (2024).
Additionally, in the past two weeks, the European Union (EU) along with the U.S. and the UK has imposed sanctions on the cryptocurrency exchange Garantex, which is accused of helping Russians evade sanctions since the Russia-Ukraine conflict began in 2022.
Blockchain Technology - A Double-Edged Sword
Law enforcement agencies are increasingly leveraging blockchain technology to track and dismantle criminal networks. Redbord stated: "Enhancing blockchain monitoring capabilities, international cooperation, and employing strong sanctions have helped authorities detect, disrupt, and eliminate illegal cryptocurrency ecosystems."
Despite significant advancements, darknet markets continue to thrive. Revenue from these platforms has increased from $1.6 billion to $1.7 billion in 2024, indicating that cryptocurrency crime remains a major challenge for regulators.
The fight against darknet markets and illicit money flows in cryptocurrency is becoming increasingly fierce. The development of blockchain technology not only enhances transparency in the financial ecosystem but also becomes a powerful tool for both authorities and criminals. This raises an urgent demand for tighter control measures and international cooperation to ensure the integrity of the cryptocurrency market.
