The crackdown on darknet-facilitated drug trafficking continues as the U.S. Department of the Treasury escalates its efforts by targeting Behrouz Parsarad, the Iran-based administrator of the infamous Nemesis Marketplace. This strategic move, unveiled on March 5, 2025, comes on the heels of a successful 2024 international law enforcement operation that brought down the platform responsible for facilitating over $30 million in illicit drug sales, including dangerous synthetic opioids such as fentanyl, to customers around the globe.
Behrouz Parsarad, identified as the mastermind behind Nemesis, now faces severe financial constraints under Executive Order 14059, which specifically aims at dismantling narcotics proliferation networks. The Treasury’s Office of Foreign Assets Control (OFAC) collaborated with the FBI-led Joint Criminal Opioid and Darknet Enforcement (JCODE) team along with European agencies to impose sanctions on Parsarad, marking OFAC’s first action as a JCODE member.
Acting Under Secretary Bradley T. Smith emphasized the importance of disrupting platforms like Nemesis, stating that “Parsarad sought to build—and continues to try to re-establish—a safe haven for narcotics trafficking.” The Nemesis Marketplace operated from 2021 until its dismantling in March 2024, catering to 30,000 users and 1,000 vendors who engaged in illicit activities ranging from drug sales to counterfeit documents and hacking services.
Parsarad profited significantly from transaction fees and money laundering through cryptocurrency wallets, accumulating substantial wealth before authorities from the U.S., Germany, and Lithuania seized its servers. Despite the shutdown, intelligence indicates that Parsarad has been attempting to revive the marketplace, prompting OFAC to publicly disclose 49 cryptocurrency addresses associated with his operations.
The action taken by OFAC sheds light on the darknet’s pivotal role in the distribution of synthetic opioids, particularly fentanyl. A June 2024 advisory by the Financial Crimes Enforcement Network (FinCEN) highlighted how platforms like Nemesis enable cartels to traffic precursor chemicals and equipment for fentanyl production, exacerbating the overdose crisis in the United States.
Parsarad’s operations based in Iran presented enforcement challenges, illustrating the broader difficulties in cracking down on offshore darknet hubs. The Treasury drew comparisons to previous actions against Hydra Market in 2022 and Genesis Market in 2023, underscoring the exploitation of cryptocurrency anonymity by these illicit platforms.
Under the sanctions, all assets linked to Parsarad within U.S. jurisdictions are frozen, and American entities are prohibited from engaging in transactions with him. Foreign entities found aiding his illicit activities face the risk of secondary sanctions, signaling an expansion of extraterritorial enforcement measures.
The U.S. government’s strategy to combine law enforcement actions with financial pressure was reiterated by IRS Criminal Investigation Chief Jim Lee, who emphasized the importance of targeting the financial infrastructure of darknet markets to disrupt opioid supply chains. While the takedown of Nemesis dealt a significant blow to a major narcotics hub, experts caution that administrators often resurface, showcasing the resilience of darknet markets driven by the demand for anonymous transactions.
By honing in on cryptocurrency trails, a tactic that has been refined over the years, OFAC aims to weaken the financial underpinnings of these operators. The Treasury encourages financial institutions to remain vigilant in monitoring crypto transactions tied to the 49 flagged addresses, while stressing the critical role of international coordination, as demonstrated by the involvement of European agencies in the Nemesis operation.
This sanctions regime signals a shift towards a systematic targeting of darknet ecosystems, merging cyber policing with financial warfare in the ongoing battle against synthetic opioids that claim thousands of lives annually in the U.S. The case of Behrouz Parsarad sets a precedent in this ongoing struggle, yet the evolving sophistication of darknet platforms ensures that the fight will persist both on servers and within blockchain ledgers.
In conclusion, the relentless pursuit of individuals like Behrouz Parsarad underscores the commitment of the U.S. government to combat darknet-facilitated drug trafficking and disrupt the operations of illicit online marketplaces. As law enforcement agencies continue to adapt to emerging threats posed by the darknet, the collaborative efforts of international partners will remain essential in dismantling these networks and safeguarding public health and safety.