Want to know where illicit crypto drug money is flowing? A new report from blockchain security experts at TRM Labs reveals a startling trend: Russian-language darknet marketplaces have become the undeniable kings of crypto-fueled drug transactions in 2024.

The report digs into the numbers, showing these platforms are responsible for a staggering 97% plus of all drug-related crypto activity seen on the Bitcoin and TRON networks. To put that in perspective, that’s roughly $1.65 billion of the total $1.7 billion linked to the drug trade on these two major blockchains last year.

[Editor’s Note: It’s important to remember that while $1.7 billion in crypto drug trade is significant, it’s still just a drop in the ocean. The global illegal drug market is estimated to be a colossal $600 billion industry, putting crypto’s share of the criminal pie into perspective.]

Why Russian darknets are thriving

So, what’s behind the booming success of these Russian darknet drug emporiums? TRM Labs points to a combination of factors fueling their continued dominance. These include a perceived weaker risk of law enforcement intervention, the tempting affordability of importing chemical precursors from China, and a growing appetite for synthetic narcotics.

Adding to their resilience, out of almost 20 active marketplaces tracked, only a handful—just four—shut down during the year. The most prominent closure was that of Solaris, but overall, the landscape remained remarkably stable.

Here’s a fascinating twist: operators in this corner of the dark web seem to be playing by a different rulebook. Unlike their Western counterparts often associated with sudden “exit scams,” Russian darknet administrators frequently allow users to withdraw their funds before pulling the plug on a marketplace.

This somewhat unusual practice has cultivated a sense of reliability and trust within their user base, a stark contrast to Western markets. These Western platforms have been plagued by law enforcement takedowns and abrupt, fraudulent shutdowns, significantly eroding user confidence.

Vendors shift to encrypted channels

While Russian marketplaces experienced considerable growth, the wider world of online drug dealing witnessed a noticeable shift in 2024.

Drug vendors are increasingly ditching centralized darknet markets and opting for encrypted messaging apps like Telegram and Signal, along with secure email, to conduct their business.

This move, which started gaining traction in the West, is now picking up speed within Russian-speaking networks as well.

TRM Labs clarifies that this change is driven by vendors wanting to tap into a broader, potentially less tech-savvy customer base. It also helps them cut down on marketplace fees and sidestep the risks associated with market shutdowns or police raids.

To stay visible and keep business running smoothly, many vendors are now spreading their operations across various channels, including easily accessible websites and social media platforms.

Consequently, TRM Labs has observed a surge in crypto transactions linked to these spread-out, decentralized vendor shops. Back in 2023, these addresses received $289 million in crypto. Fast forward to 2024, and that number more than doubled, dramatically leaping to over $600 million.