Darknet Drug Trafficking

Blockchain Security Report: January 2024

Understanding Darknet Drug Trafficking

Notably, the fraud shop known as Brian Dumps saw its revenue decline to zero at the tail end of last year. That leaves Unicc and Benumb Shop as the two last fraud shops making a real dent on the illicit personal data market. Encryption technologies allow vendors to communicate with customers and receive payments anonymously. The drugs are delivered in the post, so vendor and customer never have to meet in person. Although the sale of party drugs like ecstasy (MDMA) and cocaine went down as a result of the pandemic, the EMCDDA says users have turned to lesser known psychoactive drugs instead.

Payne says the DEA has offices in Beijing and Shanghai and are working closely with the Chinese government to shut labs that illegally produce banned substances. As part of the announcement on Tuesday, the Justice Department unsealed indictments against nearly a dozen defendants in California, New York, Tennessee, Virginia and Washington State who were accused of selling illicit goods on the dark internet, money laundering and other crimes. When German authorities arrested DarkMarket’s alleged operator and seized the site’s infrastructure, they recovered a trove of evidence that they subsequently provided to dozens of law enforcement teams across the world for follow-up investigations. The engine of the marketplace protects the total number of users registered on it, but based on the number of unique shops, likely it may exceed 15,000 unique actors. The Administrators of Solaris also highlighted strong connection to KillNet responsible for multiple DDOS attacks against the U.S., NATO and various EU-based government resources – who may assist Solaris in fighting against their competitors and enemies. Many Hydra vendors have also migrated to RuTor, particularly in the immediate aftermath of the forum’s seizure.

This darknet trade offers an entirely new way for drug dealers to sell their wares and for customers to score. The market is worth some $150 million a year—a small fraction of the $300 billion estimated worth of the global trade in illegal drugs—but it is growing rapidly. The Darknet operations pumped kilograms of fentanyl pills into communities across the nation over the course of four years, using Darknet markets including AlphaBay, Dream, Wall Street, and Empire to reach a broad customer base. The defendants also used encrypted messaging services to communicate with and sell pills directly to customers. In exchange for cryptocurrency, the defendants sold fentanyl pills that were shipped via the U.S. The conspiracies relied on sophisticated technology to distribute and profit from a staggering quantity of pills pressed with fentanyl.

The proliferation of the internet has facilitated various illicit activities, one of the most significant being darknet drug trafficking. The darknet refers to a segment of the internet that is not indexed by traditional search engines and requires specific software, configurations, or authorization to access. This hidden layer has become a hub for criminal activities, including the sale of illegal drugs.

The Structure of the Darknet

The darknet is composed of various networks that ensure privacy and anonymity. This structure includes:

If you have specific questions related to a drug trafficking case, then it is important that you speak to an experienced federal drug trafficking attorney right away. A seven-count indictment recently released by federal prosecutors allege two people were engaging in the illegal sale of opioids on the dark web in a form of online drug trafficking . The indictment alleges that the one of the co-conspirators would illegally purchase drugs such as OxyContin and morphine pills from the other co-conspirator who was a pharmacist in Costa Rica.

Most users of the cryptomarkets are not novices and already have established experience in face-to-face markets. Individuals may be attracted by predictable supplies, choices and perceptions of reduced risk. Some events such as COVID-19 pandemic-related lockdowns seem to have drawn large numbers of new PWUD into the darknet [41]. Many new entrants may just as quickly leave when they find the cryptomarkets do not suit their needs. Successful users of cryptomarkets often need to learn and socialise themselves into the system to make it work to good effect. The technical challenges and cultural barriers to entry may make them self-limiting to an extent [42].

• Tor (The Onion Router): A browser that allows users to access hidden services and anonymize their online activity.

One way drug sellers and buyers access the dark web is through a browser called TOR, short for The Onion Router. The only way these sites can be accessed is through specific kinds of domain names ending in “.onion,” which get routed through a massive series of relays to mask internet traffic. It primarily bypasses censorship but is also used to access the general dark web.

• I2P (Invisible Internet Project): A framework for anonymous peer-to-peer connections.

Based on the details provided in the released report over the summer of 2022, most pop-up markets on the dark web were primarily fighting for brand recognition, much like a ‘cyber-90s’ type of environment. Resecurity detailed the increasing tensions between different influence groups behind illegal marketplaces in Dark Web – attacking each other, performing DDoS attacks and trying to abuse the reputation of competitors to capture a bigger market share. Resecurity outlined a new marketplace called “Kraken”, which emerged right at the start of 2023 following the Christmas holidays and was designed in Hydra’s best tradition. Launched by the WayAWay Market founders, it has already accumulated over 1,720 reputable sellers and shops selling illicit goods. Unlike marketplaces, there isn’t a commonly used template for drug listings published on Telegram. However, due to the instant nature of sharing many new items for sale, vendors are more likely to share in public further information that wouldn’t have existed in marketplaces; for example, crypto addresses for the transactions or detailed pickup locations, as shown in the example below.

• Freenet: A decentralized peer-to-peer platform which uses a distributed data store to create an anonymous web.

These networks enable users to operate without revealing their identity, making it an appealing market for drug traffickers.

Methods of Operation in Darknet Drug Trafficking

The methods used by drug traffickers in the darknet environment are sophisticated and often include:

• Cryptocurrencies: Transactions are conducted using digital currencies like Bitcoin, which provides anonymity to buyers and sellers.
• Escrow Services: To ensure safe transactions, many marketplaces use escrow services to hold payment until both parties fulfill their agreement.
• Ratings and Reviews: Similar to eBay or Amazon, users can leave reviews and ratings for vendors, influencing future purchases.

Types of Drugs Commonly Traded

The variety of drugs available on the darknet is extensive, including:

• Stimulants: Such as cocaine and methamphetamine.
• Depressants: Including opioids like heroin and prescription painkillers.
• Psychedelics: Such as LSD and psilocybin mushrooms.
• Synthetic drugs: Including fentanyl and various research chemicals.

Consequences of Darknet Drug Trafficking

The implications of darknet drug trafficking extend beyond immediate legal concerns and impact society as a whole:

Legal Repercussions

• While the dark web drug trade is a significant concern, these efforts give hope that it can be combatted effectively.
• DarkOwl analysts have previously released a report detailing the presence of alleged cartel-affiliated marketplaces on the darknet and detailed some of their product offerings including sophisticated concealed shipping.
• However, cryptocurrencies are traceable to varying degrees; for example, Bitcoin is easier to trace than Monero (Bahamazava & Nanda, 2022).
• “The dark web provides anonymity to society’s worst criminals, and functions as a trade hub for deadly opioids like fentanyl,” said Senator Cornyn.
• From 2011 all the way until mid-2017, drug markets on the dark web were estimated to be worth around $80 million in annual sales.
• This projective (third-person) technique can help when respondents do not want to reveal their real attitudes about something (Kumar et al., 2018) and has already been applied in cyber criminology (Parti et al., 2018).

Authorities globally are cracking down on darknet activities, leading to numerous arrests and the seizure of illicit goods. Key impacts include:

• Increased law enforcement efforts: Agencies such as the FBI and DEA are increasingly focused on online drug trade.
• International cooperation: Nations are working together to combat digital trafficking, leading to a more coordinated approach.

Social and Health Impacts

The societal consequences of darknet drug trafficking are profound:

• Increased addiction rates: Easier access to drugs can lead to rising addiction levels, especially among young users.
• Public health crises: The opioid epidemic has been exacerbated by the availability of drugs on darknet platforms.

FAQ: Darknet Drug Trafficking

• What is the darknet?

  The darknet is a part of the internet that is not indexed and is accessed using specific software for anonymity.

• How do transactions occur on the darknet?

  Transactions are typically conducted using cryptocurrencies to maintain anonymity.

• What types of drugs can be bought on the darknet?

  A wide range of drugs including stimulants, depressants, psychedelics, and synthetic drugs are available.

• What are the dangers of buying drugs on the darknet?

  There are significant legal risks, as well as health risks from potentially dangerous substances.

In conclusion, darknet drug trafficking represents a significant challenge in combating drug-related issues. The combination of anonymity, accessibility, and a wide range of products makes the darknet an attractive marketplace for traffickers, resulting in serious social and legal consequences. Awareness and continued efforts to address this issue are crucial in mitigating its impacts on society.