Russian darknet dominated crypto drug commerce in 2024 with $1.65 billion transactions

Blockchain safety agency TRM Labs reported that Russian-language darknet marketplaces dominated crypto-linked drug transactions in 2024.

In keeping with the report, the platforms had been behind greater than 97% of the drug-related crypto exercise on the Bitcoin and TRON networks. That interprets to round $1.65 billion out of the $1.7 billion traced to drug commerce on each blockchains final yr.

[Editor’s Note: The total value of the global illegal drug trade is estimated to be over $600 billion, making the crypto portion a small fraction of the total criminal activity.]

Why Russian darknets are thriving

TRM Labs defined that a number of components contributed to the continued dominance of Russian darknet marketplaces. These embody a diminished risk of enforcement motion, the comparatively low value of importing chemical precursors from China, and the rising demand for artificial narcotics.

Furthermore, of the practically 20 lively marketplaces recognized, solely 4 ceased operations throughout the yr, with Solaris being essentially the most notable shutdown.

Apparently, operators on this area have adopted a shocking code of conduct. Somewhat than finishing up exit scams, frequent in Western illicit markets, Russian darknet directors usually permit customers to withdraw funds earlier than shutting down operations.

This follow has helped preserve a stage of belief inside their communities, in contrast to their Western counterparts, which have been marred by takedowns and fraudulent closures which have shattered consumer confidence.

Distributors shift to encrypted channels

Whereas Russian marketplaces thrived, the broader illicit drug commerce underwent a major transformation in 2024.

Distributors more and more moved away from centralized darknet markets in favor of encrypted messaging platforms comparable to Telegram, Sign, and safe e mail channels.

This shift, initially extra frequent in Western areas, is now accelerating throughout Russian-speaking networks.

TRM Labs defined that this migration displays an effort to achieve much less tech-savvy consumers, cut back vendor charges, and keep away from disruptions attributable to market closures or regulation enforcement actions.

To keep up attain and operational stability, many distributors now function throughout a number of channels, together with clearnet web sites and social media.

Because of this, TRM Labs reported elevated crypto use linked to those decentralized vendor outlets. In 2023, such addresses obtained $289 million. That determine greater than doubled in 2024, hovering previous $600 million.