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Blockchain Security Firm Reports on Illicit Drug Sales
Blockchain security firm TRM Labs reported that Russian-language darknet marketplaces dominated crypto-linked drug transactions in 2024.
According to the report, the platforms were behind more than 97% of the drug-related crypto activity on the Bitcoin and TRON networks. This translates to around $1.65 billion out of the $1.7 billion traced to drug trade on both blockchains last year.
Why Russian Darknets are Thriving
TRM Labs explained that several factors contributed to the continued dominance of Russian darknet marketplaces. These include a diminished threat of enforcement action, the relatively low cost of importing chemical precursors from China, and the growing demand for synthetic narcotics.
Moreover, of the nearly 20 active marketplaces identified, only four ceased operations during the year, with Solaris being the most notable shutdown.
Interestingly, operators in this space have adopted a surprising code of conduct. Rather than carrying out exit scams, common in Western illicit markets, Russian darknet administrators often allow users to withdraw funds before shutting down operations.
This practice has helped maintain a level of trust within their communities, unlike their Western counterparts, which have been marred by takedowns and fraudulent closures that have shattered user confidence.
Vendors Shift to Encrypted Channels
While Russian marketplaces thrived, the broader illicit drug trade underwent a significant transformation in 2024.
Vendors increasingly moved away from centralized darknet markets in favor of encrypted messaging platforms such as Telegram, Signal, and secure email channels.
This shift, initially more common in Western regions, is now accelerating across Russian-speaking networks.
TRM Labs explained that this migration reflects an effort to reach less tech-savvy buyers, reduce vendor fees, and avoid disruptions caused by market closures or law enforcement actions.
To maintain reach and operational stability, many vendors now operate across multiple channels, including clearnet websites and social media.
As a result, TRM Labs reported increased crypto use linked to these decentralized vendor shops. In 2023, such addresses received $289 million. That figure more than doubled in 2024, soaring past $600 million.
Conclusion
In conclusion, TRM Labs’ report highlights the significant dominance of Russian-language darknet marketplaces in the illicit drug trade, as well as the shift towards encrypted channels by vendors. These trends have significant implications for law enforcement and the broader drug trade landscape.
FAQs
- What is the estimated value of the global illegal drug trade? The estimated value of the global illegal drug trade is over $600 billion.
- What is the significance of the crypto portion of the drug trade? The crypto portion is a small fraction of the total criminal activity, but it is still a significant portion of the drug trade.
- What are the factors contributing to the dominance of Russian darknet marketplaces? The factors contributing to the dominance of Russian darknet marketplaces include a diminished threat of enforcement action, the relatively low cost of importing chemical precursors from China, and the growing demand for synthetic narcotics.
- Why are vendors shifting to encrypted channels? Vendors are shifting to encrypted channels to reach less tech-savvy buyers, reduce vendor fees, and avoid disruptions caused by market closures or law enforcement actions.
- What is the total value of drug-related crypto activity on the Bitcoin and TRON networks? The total value of drug-related crypto activity on the Bitcoin and TRON networks is around $1.7 billion, with Russian-language darknet marketplaces dominating crypto-linked drug transactions.
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