Cyber Crime

Russian Dark Net Markets Dominate the Global Illicit Drug Trade: Report

The dark net, the illegal drugs, and what’s next.

July 9, 2023

3 minute read

Russian Dark Net Markets Dominate the Global Illicit Drug Trade: Report

The staggering new stat show Russian-language Dark Net Markets (DNM) dominated the Illicit drug trade with over 80% of the $1.49 billion spent in 2022.

Russian-language Dark Net Markets (DNMs) have experienced a significant surge in popularity among drug dealers and buyers, emerging as a dominant force in the global illicit drug trade, a new report suggests.

Recent data presented by blockchain intelligence platform TRM Labs reveals that these markets accounted for an alarming 80% of the $1.49 billion worth of illicit drugs purchased in 2022.

In order to fully understand the rise of Russian DNMs in the drug trade, one must unpack the technological advancements, socio-political factors, and evolving drug market dynamics that have contributed to their unprecedented popularity.

According to researchers, the appeal of Russian DNMs in the drug trade lies in the convenience and perceived anonymity they offer. Technological advances have made the battle against cybercrime syndicates all the more challenging for law enforcement, and the same encryption and anonymity tools are being used to run the dark net markets.

These underground online marketplaces allow dealers and buyers to operate covertly, challenging law enforcement investigations and arrests. The preference for crypto transactions and blockchain technology within DNMs has further amplified the advantage bestowed upon actors in the illicit drug trade. Loose regulations surrounding cryptocurrency payments make them an ideal tool for masking illegal exchanges.

The growing prominence of Russian-language DNMs also begs the question: how much of a free rein has the widening disconnect between the West and the Kremlin on matters of cybercrime given them?

According to BanklessTimes’ report, geopolitical tensions and conflicting interests have hindered collaboration, creating fertile ground for DNMs to flourish. Consequently, law enforcement agencies ability to track, apprehend, and prosecute cybercriminals has been significantly impacted.

Impact of Russian DNM Takedown on Illicit Drug Trade

Moreover, the shift from traditional to online markets in recent years has allowed the drug trade to flourish in the shadows of the dark net. According to the Chainanalysis report, four out of five of the highest-earning dark net markets in 2022 were involved in the drug trade.

Investigations and arrests that could previously be conducted within one region are now slowed by these DNMs, which provide an open market free from geographical boundaries and laws, making them highly alluring to those involved in illicit drug sales.

In April 2022, when law enforcement shut down Hydra, a major Russian-speaking DNM, a decline in the average daily revenue of all such markets was observed, dropping from $4.2 million before closing to $447,000 after its closure. If global efforts against Russian-language DNMs are combined, their impact would send shockwaves through the online illicit drug trade market.

Halting Illegal Transactions

Addressing the most nefarious darknet marketplaces starts with improved information sharing among law enforcement agencies, financial institutions, and cyber-research institutions. The global nature of the dark web makes international cooperation imperative.

During 2018 and 2019, Interpol and the European Union brought together law enforcement agencies from 19 countries, leading to the identification of 247 high-value targets and the sharing of operational intelligence required for effective enforcement.

The outcomes were promising, as these joint efforts resulted in arrests and the closure of 50 illicit dark-web platforms, including major drug markets such as the Wall Street Market, Genesis, Alphabay, Hansa, and Valhalla.