The U.S. Treasury’s Office of Foreign Assets Control has blacklisted 49 cryptocurrency addresses—44 Bitcoin and 5 Monero wallets—linked to the notorious Nemesis darknet marketplace. This crackdown represents the government’s latest move against illicit online activities. Behind the marketplace? One Behrouz Parsarad, who apparently thought running a digital black market was a solid career choice.
Nemesis operated for three years before authorities shut it down in March 2024. During its run, the marketplace amassed roughly 30,000 users buying and selling everything from drugs to stolen data. They even offered convenient money laundering services—like a criminal’s one-stop shop. Much like Tornado Cash, which has been used by the North Korean Lazarus Group to launder nearly $1 billion in stolen cryptocurrency funds.
A virtual bazaar for felons, serving thousands with drugs, data, and laundering options for three profitable years.
Parsarad didn’t provide these services out of the goodness of his heart, of course. Transaction fees made him quite wealthy. Bitcoin was the platform’s primary currency due to its liquidity and widespread acceptance. For the extra-paranoid criminals, Monero offered enhanced privacy features. These transactions rely on blockchain records for transparency, though criminals often employ techniques to obscure their activities.
Parsarad’s Bitcoin wallets received approximately $850,000 from illicit sources, with over $12,000 redirected to other darknet marketplaces. In total, he moved a cool $1.6 million in cryptocurrency. Not bad for selling digital contraband.
This action follows the Treasury’s 2022 sanctions against Hydra Market, showing the government’s growing ability to trace supposedly untraceable transactions. The message is clear: using crypto for illegal activities isn’t as anonymous as you thought.
The sanctions create immediate consequences for the cryptocurrency industry. Exchanges now face even more pressure to implement strict anti-money laundering protocols. Privacy coins like Monero might face increased scrutiny. The marketplace reportedly processed nearly $30 million in transactions related to illegal goods during its operation. Sorry, crypto bros—regulation is here to stay.
For everyday Americans, these sanctions mean transactions with blacklisted addresses are now prohibited on a strict liability basis. Accidentally interact with one of these addresses? Too bad, you could still face consequences.
Reportedly, Parsarad plans to launch a new darknet marketplace. Good luck with that. Authorities are watching, and the cat-and-mouse game continues as regulators balance enforcement against innovation in blockchain technology.
