The United States has placed strict sanctions on the operator of Nemesis, a large illegal marketplace on the darknet. Authorities say this marketplace allowed people to buy and sell illegal drugs, fake identification documents, and hacking tools.
The U.S. government’s Office of Foreign Assets Control (OFAC) has identified the person behind Nemesis as an Iranian national who allegedly controlled all transactions on the platform. Officials say he made money by taking a small percentage from every sale. This led to nearly $30 million in drug transactions between 2021 and March 2024, when the site was shut down by authorities.
International Authorities Shut Down Nemesis
In a major international operation, U.S., German, and Lithuanian officials worked together to seize the Nemesis servers. Despite this, reports say the marketplace’s operator was already making plans to restart the illegal business with former sellers.
Nemesis had a massive customer base, with over 30,000 active users and 1,000 vendors worldwide, including buyers from the United States. It was known for selling fentanyl and other synthetic opioids, which have been responsible for thousands of drug-related deaths.
OFAC Sanctions 49 Crypto Addresses Linked to Nemesis Darknet Crimes
How Authorities Took Action
U.S. officials say they are determined to stop criminal activities linked to cryptocurrency. To make it harder for Nemesis’ operator to continue his activities, the government has frozen 44 Bitcoin addresses and five Monero addresses linked to him.
Tracking the Money Flow
Blockchain analysis showed that these Bitcoin wallets received around $850,000. But by the time the operator moved the money elsewhere, the value had grown to $1.6 million. Some of these funds were sent to three cryptocurrency exchanges, where he turned the digital currency into cash.
Links to Cybercrime and China
Authorities believe the Nemesis marketplace was not only used for drug sales but also for cybercrime. Experts say it helped cybercriminals buy fake documents and hacking tools to steal people’s online accounts. Investigations also found links between Nemesis vendors and chemical manufacturers in China, who supply the raw materials needed to make illegal drugs.
Breaking Criminal Networks
Law enforcement officials say this kind of illicit trade strengthens global crime networks, making it easier for criminals to operate across borders. By targeting marketplaces like Nemesis, authorities aim to disrupt these networks and cut off a major source of income for drug traffickers and fraudsters.
A Larger Crackdown on Darknet Markets
Nemesis was a major player in the darknet world, but it was not the largest. Some marketplaces, such as Hydra Market, were much bigger. Hydra, which operated in Russia from 2015 until 2022, had 17 million users and generated around $5 billion before it was taken down by authorities.
Sanctions Showdown: Trump’s Push to Ease Restrictions on Russia
Law enforcement agencies around the world have been increasing their efforts to shut down these illegal platforms. In recent years, Europol, Germany’s Federal Criminal Police (BKA), and the UK’s National Crime Agency (NCA) have taken down major darknet marketplaces, including Hydra Market in 2022, Monopoly Market in 2023, and Nemesis in 2024.
Recently, the European Union joined the United States and the United Kingdom in placing sanctions on Garantex, a Russian cryptocurrency exchange that helped criminals bypass financial restrictions. Since the start of the Russia-Ukraine war in 2022, many criminal groups have used such exchanges to move money secretly.
Law enforcement agencies have become better at tracking and stopping these crimes by using advanced blockchain technology. By working together, international agencies can now track illegal cryptocurrency transactions more effectively and shut down criminal networks faster. However, despite these efforts, darknet marketplaces are still making huge amounts of money, with total revenues increasing from $1.6 billion to $1.7 billion in 2024 alone.
