Treasury Sanctions Iranian Darknet Kingpin, Seizes $850K in BTC

The U.S. Department of the Treasury has taken significant action against illicit activities on the darknet by imposing sanctions on Behrouz Parsarad, an Iranian national accused of managing the now-defunct Nemesis darknet marketplace. As part of this action, authorities have blacklisted 49 Bitcoin (BTC) and Monero (XMR) addresses linked to Parsarad.

The Office of Foreign Assets Control (OFAC) announced the sanctions on March 4, 2024, stating that the move was part of an international operation aimed at dismantling Nemesis earlier in the year. The sanctions against Parsarad are part of OFAC's ongoing efforts to disrupt illicit online marketplaces, following a similar action against Hydra Market in April 2022, which resulted in the confiscation of approximately €23 million worth of Bitcoin.

OFAC alleges that Parsarad profited from Nemesis by charging users transaction fees, reportedly amassing millions over the marketplace's lifespan. Nemesis served as a hub for cybercriminals and drug traffickers, enabling the sale of illicit substances and services. The platform's built-in money laundering features allowed users to conceal their financial activities.

Between 2021 and 2024, authorities estimate that Nemesis facilitated over $30 million in drug sales. The marketplace also offered additional illegal services, including forged identification documents and professional hacking services. Users could hire hackers to compromise online accounts and steal sensitive data.

Despite Nemesis' shutdown, reports suggest that Parsarad has already begun discussing the launch of a new darknet marketplace with vendors. A blockchain investigation by Chainalysis uncovered that Parsarad funneled over $12,000 to other darknet marketplaces, such as ASAP, Incognito, and Next Generation. His Bitcoin wallets received over $850,000 from addresses associated with illicit transactions, and he moved over $1.6 million in crypto, potentially leveraging Bitcoin's price fluctuations to grow his holdings.

Chainalysis noted that Parsarad had no direct on-chain links to Iranian financial services but had significant exposure to darknet marketplaces and indirect connections to crypto mixers. The firm suggests that Parsarad deliberately obscured his illicit activities to evade detection due to Iran's strict penalties for drug-related offenses, including the death penalty.