Russian Drug Trade Likes That Cryptocurrency
January 3, 2025
No smart software involved. Just a dinobaby’s work.
High tech innovation meets traditional thuggery in Russia’s expanding drug trade. The Global Initiative Against Transnational Organized Crime summarizes its recent report in, “Breaking Klad: Russia’s Dead Drop Drug Revolution.” The write-up includes links to download the report and a related press release. First up, the innovation:
“There has been a groundbreaking shift in the global drug trade, pioneered in Russia and now spreading globally. Unlike traditional drug trafficking models, this system leverages darknet markets and cryptocurrency for anonymous transactions, allowing buyers to retrieve drugs from hidden physical locations, or ‘dead drops,’ rather than direct exchanges. Driven by large platforms such as Kraken, Mega, and Blacksprut [sic], Russian darknet markets control 93% of the global share, generating approximately $1.5 billion in revenue in 2023 alone. This dominance marks a new era for organized crime, with Russia’s digital drug economy vastly surpassing traditional Western darknet markets in scope and influence.”
We are told this digital shift was prompted by several factors. Increasingly restrictive anti-drug policies and strained trade relations with the West contribute. Also, drug dealers now have the technology to give their clients (and themselves) the convenience and anonymity they desire. Wonderful. The writeup mentions that, within Russia, trade in cheap-to-make synthetic drugs like mephedrone is overtaking traditional imports like cocaine and heroin. Which leads us to the thuggery:
“Youth are drawn into this high-tech drug economy, often working as couriers or ‘kladmen’ for online shops—a job that comes with high risks, including violence, criminal charges, and addiction. Violence has become endemic in the system, with enforcers, known as ‘sportsmen,’ meting out harsh punishments for couriers suspected of theft or negligence. This pervasive violence, combined with the easy availability of highly addictive synthetic drugs, is fueling a public health crisis and contributing to rising incarceration rates among young Russians.”
These young people may find miserable company in a growing number of countries; the report warns this model is spreading beyond Russia’s borders. Authorities must adapt to the new reality. Understanding Russia’s darknet markets will help, advises the report.
Cynthia Murrell, January 3 , 2025
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