In a decisive move to combat the global narcotics trade, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Iranian national Behrouz Parsarad, the sole administrator of the now-defunct Nemesis darknet marketplace. As part of the sanctions, OFAC identified 49 cryptocurrency addresses associated with Parsarad—44 Bitcoin (BTC) addresses and 5 Monero (XMR) addresses.
These addresses were integral to Parsarad’s operations, facilitating transactions that supported the illicit activities of Nemesis. The designation effectively blocks all property and interests in property of Parsarad within U.S. jurisdiction, prohibiting U.S. persons from engaging in transactions involving these assets.
“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,” said 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.”
A Hub for Illicit Activities
Established in 2021, Nemesis rapidly became a prominent darknet marketplace, accessible exclusively through specialized anonymity-enhancing browsers. The marketplace, operated by Parsarad, was known for enabling the sale of narcotics, including synthetic opioids like fentanyl. At its peak, the marketplace boasted over 30,000 active users and 1,000 vendors, facilitating nearly $30 million in drug sales globally between 2021 and 2024, including significant quantities directed to the United States.. Parsarad allegedly enriched himself by collecting transaction fees from these illicit activities, pocketing millions of dollars over time.
Beyond facilitating the sale of fentanyl and other synthetic opioids, Nemesis also enabled transactions involving false identification documents and professional hacking services.The Darknet Marketplace also served as a platform for money laundering, with Parsarad reportedly aiding narcotics traffickers and cybercriminals in laundering virtual currencies.
Parsarad’s Darknet Activities and Cryptocurrency Transactions
In a detailed report by Chainalysis on Parsarad’s illicit activities on the Nemesis darknet marketplace, it is revealed that the Iranian has engaged in substantial digital asset transactions, with the majority of his funds being funneled through Nemesis. Despite operating out of Iran, a country that maintains strict laws regarding drug-related offenses, Parsarad has avoided on-chain exposure to Iranian services. Instead, he routed his transactions through foreign exchanges and darknet markets, carefully concealing his activities.
Between July 2022 and March 2024, Parsarad’s Bitcoin wallets received over $850,000 in cryptocurrency. This figure includes transactions to and from three centralized exchanges, where Parsarad liquidated some of his holdings. His total cryptocurrency transactions surpass $1.6 million, with a large portion of these movements occurring as Bitcoin’s price appreciated, nearly doubling the value of his BTC holdings.
Notably, Parsarad’s digital addresses had direct exposure to several mainstream exchanges and other DNMs such as ASAP Market, Incognito Market, and Next Generation. His transactions suggest a sophisticated network of illicit dealings, further complicating efforts by law enforcement to track and seize his assets.
Global Enforcement Collaboration
The takedown of Nemesis resulted from a coordinated effort among U.S., German, and Lithuanian law enforcement agencies, who seized the marketplace’s servers in March 2024. Despite the platform’s closure, Parsarad has reportedly attempted to establish a new darknet marketplace, reaching out to former vendors.
“Treasury remains focused on the risks posed by darknet marketplaces, as highlighted in previous designations of Genesis Market on April 5, 2023, and of Hydra Market on April 5, 2022,” OFAC said
Quick Facts:
- Behrouz Parsarad, Iran-based administrator of the Nemesis darknet marketplace. Has been sanctioned by the US Treasury office.
- Nemesis facilitated the sale of fentanyl and other synthetic opioids, generating nearly $30 million in global sales from 2021 to 2024.
- OFAC identified and sanctioned 44 Bitcoin and 5 Monero addresses linked to Parsarad’s illicit activities.
