In the twenty-first century, drug markets do not only exist on the streets. With the darknet or dark web to provide anonymity and ease of access to substances, a vast digital narcotics trade has developed. Here’s what you need to know.
The modern Silk Road came into existence in 2011 without much fanfare. Unlike the ancient trade route, this method of commerce was made to be traversed under the cover of darkness. The marketplace provided access to goods of all kinds that was free from government regulations and offered unparalleled privacy to buyers and sellers.
Of course, this became the perfect network for drug trafficking. Sellers of everything from marijuana to heroin used Silk Road to connect anonymously with drug users and dealers, with a far lower chance of getting caught.
Silk Road did not succeed at maintaining its underground status for long, and in 2013 the FBI arrested its creator, Ross Ulbricht, and shut the network down.
But where there’s will, there’s a way, and the huge demand for a marketplace like Silk Road meant copycats were inevitable. Today, the digital narcotics trade is vast, leading to a major problem for regulators and law enforcement.
The Evolution of Darknet Markets
What is a Darknet Market?
Darknet markets are online platforms operating on the darknet, a part of the internet not indexed by traditional search engines and accessible only through specific software like Tor (The Onion Router). These markets facilitate the anonymous buying and selling of illegal goods and services, primarily drugs, but also including counterfeit currency, stolen data, hacking tools, and other contraband.
What Came After Silk Road?
By the time of its shutdown, Silk Road had over 1 million user accounts and facilitated transactions worth hundreds of millions of dollars. There were many individuals and collectives waiting in the shadows to take the mantle. However, they faced the same challenges that had caused the downfall of their predecessor.
Operation Onymous (2014)
In November 2014, an international law enforcement operation known as Operation Onymous targeted several darknet markets. This led to the seizure of more than 400 hidden services, including prominent markets like Silk Road 2.0 and Hydra. The collaboration of global law enforcement agencies was a huge blow to illegal online activities.
AlphaBay and Hansa (2017)
New markets like AlphaBay and Hansa emerged. Hansa was big, but AlphaBay became the largest darknet market by 2017, with thousands of listings for drugs, weapons, and stolen data. Then, in July 2017, Operation Bayonet, another coordinated law enforcement effort, resulted in the simultaneous takedown of AlphaBay and Hansa.
Darknet markets survived
Despite these crackdowns, darknet markets remained. Each major shutdown was followed by the emergence of new platforms that have taken lessons learned from their predecessors. As has always been the case with ‘traditional’ drug dealers, the dependency created by substances leads to creative means of obtaining them.
How Have They Managed This?
Darknet markets have therefore evolved in response to law enforcement efforts, utilizing technological advancements. The evolution has included:
- Enhanced Security Measures: Newer markets have implemented stronger encryption, multi-signature escrow services, and improved user verification processes to enhance security and protect anonymity.
- Diversification of Goods and Services: While drugs remain the primary commodity, markets have diversified their offerings to include digital goods, counterfeit documents, and hacking services.
- Increased Decentralization: The shift towards decentralized marketplaces even in traditional commerce, along with the use of blockchain technology to reduce reliance on centralized servers, has made it harder for law enforcement to target single points of vulnerability.
- Community and Trust: There is a sense of community and trust within these markets, with forums and bi-direcitonal review systems being used to maintain buyer and seller confidence.
The Impact of Darknet Drug Markets
Markets on the darknet are not disconnected from the challenges traditional markets face. The COVID-19 pandemic led to a dip in the turnover of these illegal markets, and financial troubles caused by inflation have also reduced growth.
Law enforcement is also still able to make significant raids, even if they cannot take down the network as a whole. This has helped set the digital drug trade back.
However, the statistics are still shocking. A 2021 report estimated the annual worth of these markets at $315 million. There are no accurate figures for how many people use the darknet to buy drugs, although it is known that the number is steadily increasing.
One reason for this is that more people have access to the internet. But this doesn’t mean buyers of drugs are only those who would have bought in traditional markets. In fact, a significant reason for the rise in buyers is darknet marketing, which has been aggressive and effective.
This marketing has even made its way into public spaces in some regions. Russia in particular has had to deal with Kraken Market advertising on a billboard and wrapping a bus in a QR code that led to their website.
Darknet drug markets are therefore a growing risk to current and potential substance users. Unfortunately, they are not going away.
Here are some of the ways these markets are impacting society.
Supply Chain Transformation
In the past, the drug trade relied on complex networks involving multiple intermediaries, from producers to street-level dealers. The darknet has streamlined this process by connecting buyers directly with suppliers, often from different parts of the world. This transformation has several notable impacts
- Elimination of Intermediaries
- Global Reach
- Access to a Wider Variety of Drugs
- Direct Shipping
Economic Implications
The economic impact of darknet drug markets is substantial, affecting both the legal and illegal economies:
- Revenue Generation: The significant revenue generated by darknet markets supports a shadow economy that operates independently of national regulations and tax systems.
- Cryptocurrency Influence: The use of cryptocurrencies like Bitcoin in darknet transactions has influenced the broader financial landscape by driving the adoption of cryptocurrencies while highlighting their potential for facilitating illegal activities.
- Law Enforcement Costs: The resources required to monitor, investigate, and take down darknet markets are substantial. Law enforcement agencies need to invest in specialized cybercrime units and advanced technology, which can strain budgets and divert resources from other areas.
Social Consequences
There are also many social consequences of darknet drug markets, impacting individuals, communities, and public health systems:
- Increased Drug Accessibility: The ease of purchasing drugs online, along with the aggressive marketing, has made narcotics more accessible to a broader audience, including young people who might not have had access through traditional channels.
- Health Risks: The anonymity on darknet markets mean that the quality and safety of drugs are often unknown. Buyers may receive substances that are more potent or contaminated, leading to a higher risk of overdoses and adverse health effects.
- Crime and Violence: While darknet markets reduce some aspects of street-level crime, such as violent encounters between dealers and buyers, they contribute to other forms of criminal activity. The profits generated can fund organized crime, and the anonymity of transactions can facilitate other illegal enterprises, such as human trafficking and arms dealing.
Public Health and Policy Solutions
As technology develops, it becomes more difficult for law enforcement to hinder the growth of darknet markets. Public health organizations and policymakers have a part to play, taking various routes to address the problem.
Education and Awareness
Education and awareness campaigns can be effective by informing vulnerable populations about the risks and consequences associated with purchasing drugs online. These types of programs include:
- Public Campaigns: Using traditional and social media.
- School Programs: Updating school curricula to prevent youths from accessing these markets.
- Community Outreach: Through community-based organizations.
Harm Reduction Programs
Harm reduction strategies aim to minimize the negative health consequences associated with drug use, rather than solely focusing on preventing drug use itself. These programs can be particularly effective in addressing the public health challenges posed by darknet drug markets.
Some harm reduction strategies are controversial, as they provide ‘safe’ spaces for drug use, but the following have been shown to reduce harm:
- Supervised Consumption Sites
- Naloxone Distribution and Training
- Services Testing Substance Purity and Composition
Policy and Regulation
Finally, the development of regulatory frameworks to address the specific challenges posed by darknet markets is important in order to prevent further damage. These include policy decisions by state and federal governments, and an increased focus on rehabilitating those affected by substances, rather than criminalizing them.
Conclusion
The rise of darknet drug markets has led to a massive digital narcotics trade. This has led to increased drug use and other major challenges, especially for vulnerable communities. Law enforcement will not solve this issue, as markets are finding new ways to avoid detection as technology advances. Rather, the prevention of drug use and rehabilitation of people struggling with addiction is necessary and can be achieved by improved education and access to treatment.
Sources
- Chain Analysis: Darknet Market Revenues Rise In 2023 As Markets Develop Role Specialization. Accessed 23 May 2024.
- Biometrica Systems: The Dark Side Of The Web: Drug Trafficking On The Darknet Grew Nearly Fourfold Recently. Accessed 23 May 2024.
- UN World Drug Report 2023. Accessed 23 May 2024.
- UN on Drug Control: Operation Onymous. Accessed 23 May 2024.
