Blockchain security firm TRM Labs reported that Russian-language darknet marketplaces dominated crypto-linked drug transactions in 2024.
According to the report, the platforms were behind more than 97% of the drug-related crypto activity on the Bitcoin and TRON networks. That translates to around $1.65 billion out of the $1.7 billion traced to drug trade on both blockchains last year.
[Editor’s Note: The total value of the global illegal drug trade is estimated to be over $600 billion, making the crypto portion a small fraction of the total criminal activity.]
Why Russian darknets are thriving
TRM Labs explained that several factors contributed to the continued dominance of Russian darknet marketplaces. These include a diminished threat of enforcement action, the relatively low cost of importing chemical precursors from China, and the growing demand for synthetic narcotics.
Moreover, of the nearly 20 active marketplaces identified, only four ceased operations during the year, with Solaris being the most notable shutdown.
Interestingly, operators in this space have adopted a surprising code of conduct. Rather than carrying out exit scams, common in Western illicit markets, Russian darknet administrators often allow users to withdraw funds before shutting down operations.
This practice has helped maintain a level of trust within their communities, unlike their Western counterparts, which have been marred by takedowns and fraudulent closures that have shattered user confidence.
Vendors shift to encrypted channels
While Russian marketplaces thrived, the broader illicit drug trade underwent a significant transformation in 2024.
Vendors increasingly moved away from centralized darknet markets in favor of encrypted messaging platforms such as Telegram, Signal, and secure email channels.
This shift, initially more common in Western regions, is now accelerating across Russian-speaking networks.
TRM Labs explained that this migration reflects an effort to reach less tech-savvy buyers, reduce vendor fees, and avoid disruptions caused by market closures or law enforcement actions.
To maintain reach and operational stability, many vendors now operate across multiple channels, including clearnet websites and social media.
As a result, TRM Labs reported increased crypto use linked to these decentralized vendor shops. In 2023, such addresses received $289 million. That figure more than doubled in 2024, soaring past $600 million.
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