The U.S. Department of the Treasury has imposed sanctions on Iranian national Behrouz Parsarad, the sole administrator of Nemesis, a darknet marketplace that facilitated the sale of illegal drugs, hacking services, and false identification documents.
This action follows the marketplace’s takedown in a global law enforcement operation in 2024.
A Darknet Marketplace for Crime
Nemesis, founded in 2021, was a criminal enterprise with over 30,000 active users and 1,000 vendors. According to U.S. officials, the marketplace facilitated transactions worth nearly $30 million, including fentanyl sales in the United States and abroad. Designed with built-in money laundering features, darknet provided a safe haven for cybercriminals and drug traffickers.
“As the administrator of the Nemesis darknet marketplace, Parsarad sought to build—and continues to try to re-establish—a safe haven to facilitate the production, sale, and shipment of illegal narcotics like fentanyl and other synthetic opioids,” stated Acting Under Secretary for Terrorism and Financial Intelligence Bradley T. Smith. “Treasury, in partnership with U.S. law enforcement, will use all available tools to dismantle these darknet marketplaces and hold accountable the individuals who oversee them.”
Darknet allowed criminals to sell fentanyl, often laced with other substances and provided professional hacking services that enabled buyers to take control of victims’ online accounts. The marketplace’s encrypted nature allowed users to operate anonymously, making it a major player in global cybercrime.
International Crackdown and Sanctions
In March 2024, U.S., German, and Lithuanian law enforcement agencies coordinated a joint operation to seize Nemesis’ servers, effectively shutting down the marketplace. However, authorities report that Parsarad has been actively trying to rebuild a similar platform and has been in contact with former vendors.
OFAC’s action marks its first designation as a member of the FBI-led Joint Criminal Opioid and Darknet Enforcement (JCODE) Team. The designation was made under Executive Order (E.O.) 14059, which targets individuals and entities contributing to the proliferation of narcotics. OFAC’s move aligns with previous actions against other illicit marketplaces, including the shutdown of Genesis Market in 2023 and Hydra Market in 2022.
Financial Networks Under Scrutiny
In addition to sanctioning Parsarad, OFAC has identified 49 virtual currency addresses linked to his financial activities. These addresses were allegedly used to launder funds for narcotics traffickers and cybercriminals, generating millions of dollars in illicit revenue.
Treasury officials emphasized that darknet marketplaces are crucial to the global drug trade. A recent Financial Crimes Enforcement Network (FinCEN) advisory, published on June 20, 2024, highlighted how criminal organizations use these platforms to distribute precursor chemicals and synthetic opioids, worsening the fentanyl crisis in the United States.
Nemesis Marketplace: Implications of the Sanctions
The sanctions against Parsarad have significant consequences. All property and interests linked to him within the United States or under U.S. control are now blocked. Additionally, entities that are at least 50% owned by Parsarad are also subject to these restrictions.
Financial institutions and individuals engaging with the sanctioned entity may face severe penalties. Under U.S. law, transactions involving designated persons are generally prohibited unless authorized by OFAC. This includes providing financial assistance, goods, or services to Parsarad or entities under his control.
Violations of these sanctions could lead to civil or criminal penalties, with OFAC emphasizing strict enforcement. The Treasury Department warned that non-U.S. individuals and businesses must also comply with these restrictions to avoid potential repercussions.
A Step Forward in Stopping Darknet Crime
The action against Parsarad and Nemesis follows a broader effort to stop cyber-enabled crime and narcotics trafficking worldwide.
By targeting the financial infrastructure behind these illicit platforms, law enforcement agencies aim to curb the reach of cybercriminals and drug traffickers. While Parsarad may attempt to rebuild, authorities have signaled their resolve to track and dismantle such operations.
With darknet marketplaces playing a critical role in global cybercrime, Treasury officials stress that coordinated international action remains essential.
As the fight against online crime continues, the sanctions against Parsarad mark another significant step in securing the digital landscape from illicit activities.