Decoding Hidden Darknet Networks: What We Learned About The Illicit Fentanyl Trade On AlphaBay
Understanding Darknet Drug Trafficking
Hydra, a giant Russian-language darkweb marketplace that used cryptocurrencies for the sale and purchase of drugs, is also said to have used Binance to process more than $780 million. Separately, crypto researcher Chainalysis, hired by U.S. government agencies to track illegal flows, concluded in a 2020 report that Binance received criminal funds totaling $770 million alone, more than any other crypto exchange. Senators Maggie Hassan (D-NH), a member of the Homeland Security Committee, and John Cornyn (R-TX) introduced bipartisan legislation to increase penalties for drug dealers and strengthen the United States’ efforts to crack down on people trafficking illegal drugs through the dark web. Christopher Hampton of Cerritos, California, was charged in November 2022 with leading an organization that pushed millions of fake pills containing fentanyl and methamphetamine to thousands of customers on the darknet. Hampton operated on at least nine darknet marketplaces, according to court documents.
The transnational nature of cybercrime demanded a unified response, with intelligence-sharing and joint operations becoming imperative. Encrypted communications networks can serve as a work-around to traditional darknet marketplaces and facilitate single-vendor trade or “direct deals” by interfacing with users directly. Utilizing direct deals via encrypted chats give both buyer and seller more privacy, especially from law enforcement which has become more adept at infiltrating and shutting down darknet marketplaces dedicated to illicit drugs. The availability of controlled substances is mediated through two broad and interrelated distribution types. Social supply between friends and acquaintances relies on a moral economy of sharing and reciprocity [1]. Transactional commercial supply in contrast emphasises profits and market-mediated relationships, and sometimes validates predation and exploitation [2].
William Glarner III, 65, of Huntington Beach, was convicted at trial and sentenced to 15 years. His son, William Glarner IV, 35, of Irvine, pleaded guilty and was sentenced to 10 years. Melkom, Ick, and Olayvar face various narcotics charges and are scheduled to go on trial next year in downtown Los Angeles. McGrath and Chavez are scheduled to be sentenced next year, when each will face up to 15 years in federal prison.
WayAway also promotes the Monero anonymity enhancing cryptocurrency far more prominently than other regional DNMs. There is however a steep drop-off in activity between the top sellers who have done over 10,000 sales compared to the others. As for RuTor’s ownership, this post by user ‘ER1VD4PC’ alleges that new owners of the forum are the Khimprom syndicate, “a large cartel, but alas, already operating under protection,” according to the translation. Such claims couldn’t be fully validated and should be treated with certain grain of salt.
Darknet drug trafficking refers to the illegal trade of narcotics on anonymized online platforms that are part of the deeper layers of the internet, known as the darknet.
The Rise of the Darknet
The darknet is not accessible through standard web browsers and requires specific software, such as Tor, to access its hidden sites. This layer of the internet has become a hub for various illicit activities, including:
We’ll give you a snapshot into these online marketplaces, but first a few words on opioids, the cause of current concern in the wake of recent research. Drug sales on the dark web now amount to 315 million dollars annually, up from 80 million dollars annually just in 2017. In 2015, Gareth Owenson, a leading academic expert in the UK on the Dark Web, reported that 15.4% of indexed websites in the dark web were drug-related, despite the very low rate of hidden service requests for darknet markets related to drugs in comparison to, for example, some form of criminal abuse. While darknet markets for drugs are ultimately only a tiny fraction of the total market for black market drugs, decentralized digital drug buying via the dark web is quickly picking up steam and will likely represent a major way black markets operate moving forward in our increasingly atomized world. Dhar Law, LLP is a high-profile Boston defense firm committed to justice with a primary focus in providing assertive legal defense across the full spectrum of criminal matters.
- Drug Sales: Users can purchase a wide range of illegal substances.
- Weapons Trafficking: Armaments and ammunition can be exchanged anonymously.
- Stolen Data: Personal and financial information is often sold.
The cryptomarkets are part of an ecosystem of messaging apps, webpages, discussion servers and social media platforms that service drug markets, mainly based in Europe, North America and Australasia [25•]. They serve the end point of the global trafficking network, supplementing and sometimes replacing the trafficker to supplier/buyer stage [26] in consumer countries [27] and excluding the global south [28]. Though sometimes depersonalised, they are evolving and provide the basis of dealer-to-buyer direct dealing [29•]. The cryptomarkets may be best seen as one part of a larger flexible social and technological structure that facilitates rapid arrangement of deals between parties and expands the range of drugs sold. Drug sellers and buyers navigate within cryptomarkets depending on the changing landscape and their specific requirements. This system generates an informal feedback loop allowing dealers to make more rapid decisions about what segments of the market to service.
Machine learning algorithms, artificial intelligence, and advanced analytics emerged as essential components of the technological arsenal employed to stay ahead in the ongoing battle against cybercriminals. The inception of the Darknet drug trade in India is a tale of technology meeting criminal innovation. The Darknet, an encrypted and secluded part of the internet, became the breeding ground for illicit activities. Its architecture, accessible only through specialized tools, provided the perfect environment for the surreptitious growth of the drug trade.
For the first time, the FBI deployed agents around the country to “knock and talk” with numerous buyers of drugs on the darknet and to warn them about the dangers of their drug buys, FBI Deputy Director Paul Abbate said. “Our message to criminals on the dark web is this, ‘You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes,’” Attorney General Merrick Garland said at a press conference in Washington. If you have any further legal questions about cryptocurrency-related drug trafficking or are currently facing criminal charges, call us at Bajoka Law so we can help. Silk Road’s openness and anonymity signalled the arrival of a new type of drug diffusion [13]. It also signalled a new paradigm for drug markets that has since been emulated in other venues [14–16], one that emphasises information dense rationality in exchange [17]. According to court documents, from April 2019 to February 2021, the Texas men used the online moniker “CARDINGMASTER” to distribute pills containing methamphetamine disguised as Adderall in exchange for cryptocurrency.
Mechanisms of Darknet Drug Trafficking
Darknet drug trafficking operates through a series of steps that ensure anonymity for both sellers and buyers:
- Accessing the Darknet: Users must have the Tor browser to access darknet marketplaces.
- Cryptocurrency Transactions: Payments are typically made using cryptocurrencies like Bitcoin to maintain anonymity.
- Escrow Systems: Marketplaces often use escrow services to hold funds until the buyer confirms the receipt of goods.
- Shipping Methods: Sellers utilize discreet packaging and various shipping methods to avoid detection.
Why Darknet Drug Trafficking is Attractive
Several factors contribute to the allure of engaging in darknet drug trafficking for both buyers and sellers:
- Anonymity: The use of pseudonyms and encrypted transactions protects individuals’ identities.
- Accessibility: Users can easily browse product listings from the comfort of their homes.
- Diverse Options: A wide variety of drugs is available compared to traditional street markets.
- Global Reach: Sellers can reach buyers across the globe, expanding their customer base.
Legal Implications
Engaging in darknet drug trafficking comes with severe legal consequences, including:
- Criminal Charges: Individuals may face serious charges, which can include heavy fines and imprisonment.
- Asset Seizures: Law enforcement agencies often seize assets linked to drug trafficking.
- Increased Law Enforcement Attention: The rise of the darknet has led to dedicated task forces to combat cybercrime.
FAQs about Darknet Drug Trafficking
1. What types of drugs are commonly found on the darknet?
Drug types include, but are not limited to, opioids, stimulants, hallucinogens, and synthetic drugs.
2. How do law enforcement agencies track darknet transactions?
Agencies often use advanced cyber tools, informants, and undercover operations to track illegal activities.
- Following the Wall Street Market takedown in May 2019 and the filing of federal charges in Los Angeles against the administrators, law enforcement in the United States and Europe obtained intelligence that allowed them to identify darknet drug traffickers.
- On the face of it, New Zealand may seem an unlikely location for a rising international darknet drug market.
- The narcotics would then be removed from the maracas for example and would be repackaged and sent directly to the consumer via mail.
3. Is it safe to purchase drugs from the darknet?
No, purchasing drugs from the darknet carries risks of scams, exposure to harmful substances, and legal repercussions.
4. Can sellers be identified on the darknet?
While the darknet provides anonymity, advanced forensic methods and blockchain analysis can sometimes reveal identities.
Conclusion
Darknet drug trafficking remains a significant concern for law enforcement and governments worldwide. The challenges posed by anonymous online marketplaces require a concerted effort to combat this illicit trade effectively. Understanding the dynamics of the darknet can help inform strategies for prevention and enforcement in the face of evolving technology.
