# US Sanctions Crypto Addresses Linked to Nemesis Darknet Marketplace

In a recent move, the US Office of Foreign Assets Control (OFAC) has sanctioned the crypto addresses linked to the notorious darknet marketplace Nemesis. The platform, established by Iran-based Behrouz Parsarad in 2021, was used to facilitate the sale of illicit goods and services, including drugs, fake IDs, and hacking resources.

The sanctions, which were announced on March 4, block US citizens from dealing with Parsarad and any companies where he owns more than a 50% stake. The move is aimed at disrupting the activities of Parsarad, who is accused of laundering virtual currencies for narcotics traffickers and cybercriminals active on Nemesis.

According to Chainalysis, a blockchain analytics firm, the sanctioned property includes 44 Bitcoin (BTC) addresses and five Monero (XMR) addresses, which received over $850,000 between July 2022 and March 2024. The total amount of cryptocurrency sent by Parsarad exceeds $1.6 million, with most of his transaction volume being with Nemesis.

However, Parsarad also had interactions onchain with multiple other darknet marketplaces, including ASAP Market, Incognito Market, and Next Generation. He even sent over $12,000 to these marketplaces, according to Chainalysis.

The OFAC says that before the shutdown of Nemesis in March 2024, the marketplace had 30,000 active users and 1,000 vendors. It was designed with built-in money laundering features, which were used by Parsarad to launder virtual currencies for narcotics traffickers and cybercriminals.

"The government agency estimates Parsarad pocketed 'millions of dollars over the course of the marketplace’s existence,'" said Acting Under Secretary for Terrorism and Financial Intelligence Bradley T. Smith.

Despite enforcement actions, darknet marketplaces continue to thrive. According to a report by TRM Labs, a blockchain intelligence firm, darknet markets generated over $1.7 billion in revenue in 2024, only a slight increase from the previous year. Russian-language darknet markets continued to dominate the ecosystem, mainly due to Russian authorities' "low risk of enforcement action."

On the other hand, Western darknet marketplaces struggled under increased enforcement and operational instability. In early 2024, several major exit scams occurred in the Western darknet market scene, including the disappearance of Bohemia Market and Cannabia Market, which were later revealed to be part of an ongoing investigation.

The collapse of Incognito Market in March was also attributed to a possible exit scam. The administrator, known as "Pharoah," attempted to extort users before shutting down the marketplace.

As the darknet market landscape continues to evolve, it's clear that enforcement efforts will need to adapt to stay ahead of these illicit platforms.