US Sanctions Iranian Operator of Nemesis Darknet Marketplace

The Sanctioning of Darknet Marketplace Operator Behrouz Parsarad

Introduction

The U.S. Office of Foreign Assets Control (OFAC) has sanctioned Behrouz Parsarad, an Iranian national and operator of the darknet marketplace Nemesis. This move comes after the seizure of Nemesis’s servers in March 2024 by U.S., German, and Lithuanian officials.

Background on Nemesis

Nemesis was a significant darknet marketplace, with over 30,000 active users and 1,000 vendors. The platform sold a wide range of illegal goods, including narcotics, false identification documents, and hacking tools. Nemesis was also known for its international reach, with sales to individuals in the United States and other countries.

The Sanctioning of Behrouz Parsarad

Parsarad was the administrator of Nemesis and had full control over the platform’s cryptocurrency wallets. He took a percentage of every transaction on the marketplace, which enabled the sale of nearly $30 million in narcotics between 2021 and the platform’s closure in March 2024.

OFAC’s Action

As part of the sanctions, OFAC has designated 44 Bitcoin addresses and 5 Monero addresses associated with Parsarad. According to research from Chainalysis, the BTC wallets identified by OFAC received around $850,000. However, the value of Parsarad’s Bitcoin rose to $1.6 million by the time he sent it elsewhere, including to three centralized exchanges he used to cash out his Bitcoin and Monero.

The Significance of the Sanctioning

The sanctioning of Parsarad is a significant step in the fight against darknet marketplaces and the illegal activities they facilitate. As Acting Under Secretary for Terrorism and Financial Intelligence Bradley T. Smith stated, "As the administrator of the Nemesis darknet marketplace, Parsarad sought to build—and continues to try to re-establish—a safe haven to facilitate the production, sale, and shipment of illegal narcotics like fentanyl and other synthetic opioids."

Conclusion

The sanctioning of Behrouz Parsarad and the designation of his cryptocurrency wallets is a major blow to the darknet marketplace ecosystem. It demonstrates the increasing effectiveness of law enforcement agencies in using blockchain technology to disrupt and dismantle illegal activities. As the global fight against darknet marketplaces continues, it is crucial for authorities to remain vigilant and adapt to the evolving tactics used by criminal organizations.

FAQs

Q: What is the significance of the sanctioning of Behrouz Parsarad?
A: The sanctioning of Parsarad is a significant step in the fight against darknet marketplaces and the illegal activities they facilitate.

Q: What was the extent of Nemesis’s illegal activities?
A: Nemesis sold a wide range of illegal goods, including narcotics, false identification documents, and hacking tools, with a total revenue of nearly $30 million between 2021 and 2024.

Q: How did Parsarad make money from Nemesis?
A: Parsarad took a percentage of every transaction on the marketplace, which enabled him to amass a significant amount of cryptocurrency.

Q: What is the impact of the sanctioning on the darknet marketplace ecosystem?
A: The sanctioning of Parsarad and the designation of his cryptocurrency wallets is a major blow to the darknet marketplace ecosystem, demonstrating the increasing effectiveness of law enforcement agencies in using blockchain technology to disrupt and dismantle illegal activities.