OFAC Cracks Down on Darknet Marketplaces
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Behrouz Parsarad, the Iranian administrator of Nemesis, a darknet marketplace notorious for the sale of fentanyl and other illicit drugs. The move is part of an international crackdown on darknet marketplaces and their financial networks.
Nemesis: A Hub for Illicit Trade
Nemesis was founded in 2021 and existed as an encrypted dark web marketplace where criminals could buy and sell narcotics, fake identification documents, and hacking services. During its time in operation, the site facilitated transactions totaling almost $30 million.
Parsarad, the sole administrator of the site, controlled the site’s infrastructure and the corresponding cryptocurrency wallets. OFAC reports that he benefited substantially from transaction fees while also facilitating money laundering mechanisms to conceal illicit financial flows.
Cryptocurrency and Financial Sanctions
OFAC sanctions 44 Bitcoin (BTC) and five Monero addresses related to Parsarad’s operations. The measures freeze all assets under U.S. jurisdiction and prohibit all transactions with him or those under his control by 50% or more.
The Executive Order 14059 designation is worldwide, warning financial institutions and companies everywhere of the danger of fines if they deal with Parsarad’s cryptocurrency addresses.
Global Crackdown on Darknet Marketplaces
The U.S. has been increasing the pace of actions against darknet markets, with sanctions imposed upon Genesis Market in April 2023 and Hydra Market in April 2022. The efforts are directed to disrupt the finance infrastructure facilitating cybercrime and illicit commerce.
Although Nemesis was taken down in March 2024 by a joint U.S., German, and Lithuanian law enforcement effort, news suggests Parsarad is looking to create a replacement platform.
Broader Legal Implications
Parsarad’s marking is keeping up with recent legal battles, such as the Tornado Cash creator Alexey Pertsev suit. Convicted in May 2024 on charges of laundering $1.2 billion, Pertsev’s case raised questions about responsibility among developers for open-source financial crimes software.
With darknet markets under close scrutiny by law enforcement agencies, the attack on illicit financial networks will be stepped up. The findings in such cases as Pertsev’s will be giant legal precedents in cryptocurrency regulation and online anonymity tools.
