A dead drop is the act of hiding a packet of drugs for someone who can later come and pick it up.
Speaker AIt's a classic sort of method of spycraft.
Speaker AHe you don't even have to meet or know the person.
Speaker BWhen I first went onto a Russian darknet market and got into Hydra for the first time, what really struck me straight away was the visuals.
Speaker BBecause the level of graphic design on the landing page for every single vendor's store was just so far beyond what had been achieved in the West.
Speaker AThere's no need for the new guys on the block to rely on drug trafficking gangs, the old roots, the old families, because they make their own drugs.
Speaker AI would say it's been like a bloodless coup.
Speaker AThere has been a complete takeover of Russia's drug trade.
Speaker CWelcome to Deep Dive from the Global Initiative Against Transnational Organized Crime.
Speaker CI'm Jack Meaghan Vickers and this is Drugs Dead Drops and the Battle Over Russian Net Markets.
Speaker CSo imagine that a bunch of friends are meeting up to go out for a night, just a few bars, maybe a party.
Speaker COne of them suggests that they should buy some drugs to make the evening a bit more wild.
Speaker CIn the UK they might reach out to a friend of a friend because he knows someone, a local dealer.
Speaker CThey reach out on WhatsApp and a few minutes later a guy turns up in a car.
Speaker CThey make the deal through the car window and then they drive off.
Speaker CPretty easy, pretty seamless in the drug trade usually.
Speaker AIf it ain't broke, don't fix it.
Speaker CThis is journalist Max Daly who specializes in drugs and organized crime.
Speaker CHe's an Orwell Prize winner and co author of the book Narcomania and also co author of the GI paper Breaking Russia's Dead Drop Drug Revolution.
Speaker AI think in the west there is a very, very easy and efficient way of buying drugs.
Speaker AAnd that is the face to face system in the west is what everyone does.
Speaker AIt's like falling off a log.
Speaker AThe risk is fairly low that you're going to be caught and jailed and certainly for small amounts of drugs.
Speaker AIf you want to buy your drugs in a more normalized way, which is how most people buy drugs in the west, in Europe and in the US they don't buy them online, they buy them by calling up their friend, friend of a friend, or by messaging someone on WhatsApp.
Speaker AThat's how people buy drugs.
Speaker AThey go to a party, they bump into someone.
Speaker AAll that stuff is so easy to do.
Speaker COr if you're more tech savvy and more organized, you might jump onto Tor the darknet and purchase some drugs from an online shop.
Speaker CIn a few days, those drugs will arrive in the post.
Speaker CBut this way of purchasing illicit drugs is still relatively niche compared to face to face.
Speaker CBut in Russia, it's totally different.
Speaker CThe darknet markets have revolutionized the way consumers purchase illicit drugs.
Speaker AThere's no need for the new guys on the block to rely on drug trafficking gangs, the old roots, the old families, because they make their own drugs, they completely forget about these people.
Speaker AThey don't have to run neighborhoods with guns because they sell in secret.
Speaker AThere might be some gangsters now involved, say in the state, at a state level who are getting some payback from this potentially.
Speaker ABut in terms of the drug trade, I would say it's been like a bloodless coup.
Speaker AI think there has been a complete takeover of Russia's drug trade.
Speaker AWith no gunfights, with no argument.
Speaker AIt's just happened.
Speaker CThe ecosystem that's grown around the Russian darknet markets is sleek, modern, highly efficient, secretive and highly profitable.
Speaker CAnd it has spread throughout Russia and into some neighboring countries.
Speaker CAnd that's what we're going to be talking about in this episode.
Speaker CIn April 2022, the German Federal Criminal Police and the US Justice Department announced that they'd seized a darknet marketplace called Hydra.
Speaker CWell, a major bust on the dark Web, the largest and longest running illegal marketplace in all the world is shut down.
Speaker COfficials in Germany made that announcement today.
Speaker CThe operation part of a month long effort with the U.S.
Speaker Cjustice Department.
Speaker CThe illegal marketplace called Hydra Market officials.
Speaker BSay it's a Russian language site on the dark web.
Speaker CThey say it sold illicit drugs, counterfeit currency, stolen information and hacking services.
Speaker COfficials say they also seized 25 million bucks worth of bitcoin from Hydra's servers.
Speaker CNow, Hydra was an absolute beast in this world.
Speaker CTo put it into context, in 2021 alone, Hydra accounted for 80% of all all darknet market related cryptocurrency transactions.
Speaker COver the course of its existence, it was estimated that over $5 billion worth of cryptocurrency went through this platform.
Speaker CEven more remarkable was that when it was taken down in April 2022, during that four month period, it generated twice the income than its nearest competitors managed the entire year.
Speaker CThe story of Hydra is key to understanding how the bloodless couple Max described took place.
Speaker CThey completely changed drug markets in Russia.
Speaker CBut first, let's go back to the very beginning.
Speaker CMany people will be familiar with the story of the Silk Road.
Speaker CThe very first darknet marketplace created and administered by Ross Ulbricht, aka Dread Pirate Roberts, who was arrested in 2013 and subsequently jailed in 2015.
Speaker CIn Russia, Darknet markets had also appeared.
Speaker CA few small markets like R2D2, Wayaway, Amber Road, Molina and Rutor.
Speaker CBut the one that really took off was the Russian Anonymous Marketplace, or ramp.
Speaker BIt was a platform that kind of acted as signposting for vendors, so vendors could rent a space on the site and kind of say, hey, I'm selling.
Speaker CThis is Patrick Shortis, a senior blockchain intelligence analyst working on the illicit Drugs Program at TRM Labs & Co author of the GIS paper Breaking Russia's Dead Drop Drug Revolution.
Speaker BIn order to buy, you'd have to contact one of these vendors, and that often happened off platform on a cryptid messaging platform called Jabba.
Speaker BAnd essentially there was a bit of technical know how needed to make this work.
Speaker BLike it wasn't just a very straightforward process.
Speaker CRamp was administered by this guy known as Darkseid, whose avatar was Edward Norton's character from fight club.
Speaker CIn 2014, Darkseid agreed to an interview with journalist Andy Greenberg at Wired, where he described the idea behind anonymous bitcoin payments on the Silk Road as a masterpiece and that the Silk Road was an inspiration for creating Ramp.
Speaker COf course, since then, we know that bitcoin isn't anonymous at all.
Speaker CIn fact, it's pseudonymous and traceable.
Speaker CDespite the appreciation shown by Darkside to Silk Road, Ramp was quite different.
Speaker CIt was decentralized.
Speaker CAnd this was something Darkseid was keen to maintain.
Speaker CIt had very active forums discussing everything from hacking to drugs.
Speaker CAlthough subjects like politics were banned from the platform, as Darkside said that this was to avoid unwanted attention.
Speaker COther illicit goods were also banned from the site, like firearms or pornography.
Speaker CThe clientele of Ramp was exclusively Russian, while which is perhaps why it avoided any dealings with international law enforcement.
Speaker CLike other darknet markets over the years, Ramp had 14,000 users, and Darkside said that the site made around $250,000 a year from the sales of illicit drugs.
Speaker CGranted, that doesn't sound like a lot, but the reason for this was that Ramp didn't take commission from drug sales, but took a fee for the ability to trade on the platform.
Speaker CSo it didn't matter whether you were making hundreds of deals or just a handful.
Speaker CEveryone paid the same.
Speaker CAt the same time, Ramp launched a series of attacks on its rivals, destroying R2D2 with a series of distributed denial of service or DDoS attacks.
Speaker CAt the same time, RAMP began to revolutionize the drug buying process.
Speaker BRussian Anonymous Marketplace came up with this feature that really changed how people Went about buying drugs.
Speaker BBecause the way that it used to work was that order for you to buy drugs on the site, you would have to contact a vendor, and the vendor would, you know, ask you what you wanted.
Speaker BYou'd make an order.
Speaker BThey would go out into Russia and hide your order somewhere for you to pick up.
Speaker BAnd then you would have to then go and pick it up.
Speaker BAnd that's quite a slow process.
Speaker BYou know, you make the order, they go out, they come back, you go out, pick it up, you come back.
Speaker BAnd what the administrators of RAMP came up with was, was this process of automating this a bit.
Speaker BInstead of you making the order and then the vendor doing the dead drop, the vendor would just go out into the street and hide all of his drugs across different spaces in Russia.
Speaker BSo maybe in a forest, maybe down the back of an alleyway, what have you.
Speaker BAnd then he would advertise the fact that he had addresses to sell locations where drugs were, and then you would buy one of those locations.
Speaker BSo now the vendor just does one big series of drops, goes online and sells those locations.
Speaker BAnd this immediately speeds up the entire process because you can order it and your locations are ready to go immediately.
Speaker BAnd so that, I think, was really what changed things for this model of dealing was the fact that suddenly you could buy your drugs and get them the same day.
Speaker CGiven the quantity of drugs being purchased, shop owners used couriers to place the drugs in Russia.
Speaker CThese people are known as clad men.
Speaker CAnd to improve efficiency further, ramp created training for these couriers and a kind of how to guide or best practices on dead drops.
Speaker CCalled the clad man's Bible.
Speaker BIt basically describes how to go about doing the job of hiding drug packages, both in a city or in the outskirts of cities, what materials you'll need, what kind of operational security you should follow.
Speaker BAnd it's a very different kind of set of problems, right, because they need to think about what happens if the police stop you, how not to look shady, how to go and scout out all of the different places that you want to drop the drugs and make sure that you make those drops without raising any suspicion.
Speaker BSo some of the advice in it may be first, do a route of everywhere you plan to make the drops without the drugs on you, just to kind of get a sense of each hiding spot, make a note of them in your mind, and then go and do them all in a row so that you're not just trying to do it all at once and possibly putting yourself in danger.
Speaker BAnother bit of information might be on how to create an encrypted partition on your phone so that if the police do stop you, they'll look through your phone and they won't see anything that looks like drug related information.
Speaker BBut actually you'll have an encrypted partition in something that looks like a calculator or what have you, where actually within there are all the pictures you've taken of all the drugs and you know, the app that you're having conversations with the guys who are running the network or what have you, it will cover the correct placements for correct different types of drops.
Speaker BSo there are three different ways in which drug drops are made in Russia.
Speaker BOne of them is a magnet.
Speaker BSo drugs are attached to a small, small neodymium magnet and that might be attached to anything metal, the bottom of a phone box or the back of a street pipe or something.
Speaker BAnd in this guide, it describes the benefits and drawbacks of all of them.
Speaker BSo, for example, a magnet is very good for being able to quickly pick it up and move on.
Speaker BBut it's not great for leaving in place because there's lots of people out there in Russia who are aware of magnets with drugs on them all over the place.
Speaker BAnd so if you leave something on a magnet, it's probably going to last a couple of days at best, and then someone's going to find it and just need to be aware of that.
Speaker BAnd then there's a buried treasure.
Speaker BSo this is like the most secure treasure because it's buried under the ground and only you know where it is and you've taken a picture of it.
Speaker BRight.
Speaker BAnd so those tend to be on the outskirts of cities because it's a bit harder to go into like, you know, a very small park and just start shoveling away the ground.
Speaker BBut there's usually forests on the outskirts of cities which people can go to, and those ones will last for ages in place.
Speaker BBut they're a bit more annoying to get your customer to go to and find because the customers can dig like, you know, a couple of centimeters to the wrong space of where you've marked and not find it.
Speaker BAnd also, you know, it could be a little bit worrying going off into the woods with a big bag of drugs and hoping no one catches you.
Speaker BAnd so there's these kind of balances.
Speaker BAnd the third one is called a cache, which basically is everything that isn't the first two.
Speaker BSo this might be you leave the drugs crumpled up in a little packet of cigarettes and, you know, you toss the cigarettes on the ground or I've seen some where people have used these kind of fake stones that you would usually see someone hide their front door key in and they've put the drugs in there and placed it somewhere.
Speaker BSo there's, there's some really kind of innovative ways in which people do dead drop placements.
Speaker BAnd that tends to be something that they're rated on once the package is picked up.
Speaker BYou know, the placement is considered part of the art of being a good Russian drug dealer in the same way that the stealth, as it's called in the western drug dealers darknet world is considered part of the art of hiding a package so that no postal services will find it suspicious.
Speaker BRight.
Speaker BYou know, in the west we have flowers that are sent to people and the plant food contains all of the drugs that's actually being sent through to the recipient.
Speaker BSo there's an artistry in both worlds.
Speaker BAnd the drop placement is big one.
Speaker CFor Russia, this level of innovation meant that by the end of 2015, RAMP was the top dog, destroying all competition other than two smaller markets, Wayaway and Legal rcs, who were specialists in synthetic drugs with already established connections to the Chinese and Indian precursor market.
Speaker CWhy these two didn't get targeted like Amber Road and R2D2 is probably because their business models didn't overlap.
Speaker CWayaway and Legal RCS were synthetic drug specialists, whereas Ramp sold traditional illicit drugs like cocaine and cannabis.
Speaker CBut these traditional illicit drugs were also becoming more difficult to get.
Speaker CAccording to Lenta.rs detailed investigation.
Speaker CFirst, international sanctions against Russia after the annexation of Crimea in 2014, followed by the arrest of two of the most powerful people within Russian cross border illicit trade in 2016, Dmitry Mikhailchenko and Igor Havronov.
Speaker CAnd so the winds were changing.
Speaker CAnd ignoring these two smaller specialist net markets, Wayaway and Legal RCS would turn out to be a fatal oversight for ramp because in 2015 the two merged and HYDRA was born.
Speaker CWar was coming.
Speaker CAs Hydra emerged, it embarked on a three pronged assault on Ramp marketing, poaching and cyber attacks.
Speaker CWe'll come to the marketing later, but first let's look at the poaching side of hydra's approach.
Speaker CThey targeted Ramp through the sellers themselves by poaching sellers from their rival.
Speaker CAnd one such example of this have been mentioned on this podcast series, Hemprom.
Speaker CWe did an episode on drug use on the front line in the war in Ukraine, and the organized criminal group known as Hemprom were at the forefront of the supply.
Speaker CNow, Kimprom were heavily involved in the darknet markets.
Speaker CIndeed, they were a pawn in the war between Ramp and Hydra, as Hydra was trying to persuade shops to move from Ramp across to its platform, Ramp retaliated by offering more favorable conditions, but for exclusivity.
Speaker CBut Kimprom, one of the largest synthetic drug producers and suppliers, refused and did business on both platforms at the time.
Speaker CAccording to Aryna Volk, a representative of the Russian Ministry of Internal Affairs, Kimprom had an annual turnover of 2 billion rubles, which is around $18 million, and operated in 10 Russian regions.
Speaker CSo Ramp tried to make an example of Humproom by handing over details to Russian law enforcement, a practice that they had done before, resulting in a number of arrests and the seizure of illicit drugs.
Speaker CBut it had the opposite intended effect.
Speaker CStores voted with their feet and jumped ship to Hydra.
Speaker CAnd then the cyber attacks.
Speaker CRamp was targeted with a series of DDoS attacks using the Mirai botnet.
Speaker CAccording to Lenta.rus investigation, its use for this task was almost free of charge.
Speaker CPerhaps an indictment from the cybercrime community against the way Darkside and Ramp operated.
Speaker CAnd just to take a slight detour.
Speaker CThe Mirai botnet is a remarkable piece of malware created by three teenagers in the U.S.
Speaker Cit targets IoT devices, Internet of Things, and of course, there are billions of these devices all over the world.
Speaker CAt the last count, as of 2024, it's estimated that there are nearly 19 billion of these devices worldwide.
Speaker CMany of these have very weak or non existent security features and so can easily be compromised and gathered into a huge botnet to launch DDoS attacks, flooding targeted IPs with requests, rendering websites and servers unresponsive.
Speaker CAnd just to make matters even more extreme, if an IoT device is compromised, the Mirai botnet can then also infect any other device connected to that same network.
Speaker COne of the creators of the Mirai botnet dumped the source code, and now anyone could create one.
Speaker CAnd to put things in perspective, the Mirai botnet was used for many attacks across the globe, including crashing Germany's largest Internet provider.
Speaker CIt took down almost the entirety of Liberia's Internet.
Speaker CIn 2016, it attacked French hosting provider OVH and finally attacking the domain systems provider DIN, which took out an estimated quarter of all Internet sites.
Speaker CThis was the weapon reportedly used against Ramp by Hydra.
Speaker CHere's Patrick.
Speaker BYou had these kind of battles between Ramp and Hydra, in which Hydra was launching these attacks at Ramp.
Speaker BAnd because Ramp was down, what do customers do?
Speaker BWell, they still want drugs, so they'll go to the other market.
Speaker BNow, this is a very common thing we see it in darknet markets in the west too.
Speaker BDDoS attacks are very, very common between Darknet markets.
Speaker BIt's the equivalent of having someone lock the door to your shop so that it drives traffic to the next place.
Speaker BAnd it basically is a very effective way of making vendors and customers feel they want to migrate.
Speaker BBut essentially, that was the way in which Hydra won this war, which was securing some of the largest vendors from Ramp over to Hydra and then undermining Ramp's uptime so that it was unable to properly serve customers, and they went to Hydra instead.
Speaker CWithin two years of Hydra's arrival on the scene, they had destroyed Ramp, which was eventually taken down by Russian law enforcement in 2017.
Speaker CAlthough there is some controversy around this, it appears that law enforcement claimed to have done so.
Speaker CBut those arrested were not the admins of the site and in fact, just a single Darknet drug shop.
Speaker CAfter the destruction of Ramp, Hydra now reigned supreme and grew into a monster, dwarfing all competitors.
Speaker BSo Hydra was the largest Darknet market that we have ever seen.
Speaker BAnd when I say that, I mean it both in terms of the amount of cryptocurrency that was going to the site, which was over the entire lifetime, I think around 5 billion, which is just insane.
Speaker BI mean, you know, Western Darknet markets, even the most popular ones, tend to be in the millions.
Speaker BSome have got as far as the hundreds of millions, but not very far beyond 100 million or 200 million or something.
Speaker BTo get to 5 billion over the course of a lifetime is just huge amounts of money.
Speaker BThe other thing about Hydra is that aside from the cryptocurrency aspect of things, it was just the sheer number of feedbacks that were left by buyers on the site.
Speaker BAs part of research I did for my PhD with some colleagues, we did a scrape of the Hydra darknet market.
Speaker BAnd during that scrape, we collected all of the review data, all of the listings of the products and what have you.
Speaker BBut what we found really interesting was the review data, because on most Darknet markets, you'll see the number of reviews left on the entire market in these scrapes being around 100,000 or so reviews, you know, those kind of figures.
Speaker BWhereas for Hydra, the number was around 5 million.
Speaker BAnd that was considering the fact that Hydra doesn't actually list all of the reviews it has.
Speaker BHydra actually deletes reviews after a certain amount of time.
Speaker BSo that 5 million that we collected on that day that we did the scrape wasn't even the full scope of the review data that Hydra actually had.
Speaker BAnd it's indicative just of how many sales were going through the site every day.
Speaker BBut I would say that aside from just the size, the other significance of hydra is how it has radically changed the face of russian drug sales.
Speaker BAnd it's done this in a variety of ways.
Speaker BSo if we take a step back and we look at how darknet markets work in general, and let's talk about the west as a case to compare this to.
Speaker BIn the west, darknet markets exist in an environment of multiple different services.
Speaker BSo to use a darknet market, you're probably going to have to rely on one of these services or choose to use one of these services in the course of doing business.
Speaker BSo this might be, for example, some legal services, like a bitcoin exchange, right?
Speaker BYou're going to need to buy your bitcoin and move it to a darknet market.
Speaker BIt might be a news site so that you know which darknet markets are currently exit scamming or which ones are being closed by police, and which ones have some good security features.
Speaker BIt might be a drug testing service.
Speaker BThere are drug testing services that allow you to send in samples of drugs and have them tested.
Speaker BAnd both customers and vendors in the west have used these services to make sure that their product is of good quality.
Speaker BSo there's lots of what we call ancillary services surrounding a darknet market.
Speaker BAnd another popular one is a forum where people can talk about which vendors are good, which vendors are bad, talk about new technologies or concerns they have about law enforcement, arrests, that kind of thing.
Speaker BWhereas on the western environment, all of these services are separate to the actual darknet market.
Speaker BIt used to be that darknet markets also had a forum when they first started, but now they don't even bother with that.
Speaker BIt's just the market, and it exists in this world of other services.
Speaker BIn hydra, they combined all of those services into one platform.
Speaker CHydra had things like a drug testing service where they would do mystery buys and test the product.
Speaker CThey apparently had a doctor service, trained medical professionals who would talk to customers if they were having an overdose or if there was some issue with the drugs they'd purchased.
Speaker CThey also created a school of cladmen, almost like an apprenticeship scheme.
Speaker BYou would basically join and they would talk to you about the various aspects of becoming a courier in a drug vending network, and the kind of things you had to learn, the kind of things you should be aware of.
Speaker BAnd then they would put you on an apprentice program with a darknet market store that they knew was one of their top stores and guarantee you a job provided that you engage with all the training.
Speaker BSo it wasn't just a darknet market.
Speaker BSo just an absolute mega mark.
Speaker BYou know, the Walmart of the darknet.
Speaker COne of Hydra's successor markets, Mega, has a mascot called Moriarty who will come to shortly.
Speaker CBut in one of his wonderfully produced videos, he retells the story of the history of Hydra, in which he described it as a drug supermarket on the darknet, and that the forums that came before it were prehistoric.
Speaker CYou see, alongside drugs, Hydra also offered other services such as ransomware as a service, hacking services, fraudulent identification documents, stolen data, counterfeit currency, and so on.
Speaker CAnd that is one of the main reasons Hydra was targeted by German and US agencies, its money laundering capabilities, where it offered things like a bitcoin bank mixer.
Speaker CAccording to the U.S.
Speaker Cdepartment of Justice's indictment, these services were so popular that other cybercriminals, like ransomware operators, would set up fake vendor accounts or use compromised accounts just to get access to this laundering service so they could cash out their illicit gains.
Speaker CAnd as we heard from Patrick, over the course of its lifetime, hydra processed about $5.2 billion worth of transactions.
Speaker CAnd before COVID hit, they had plans to expand globally.
Speaker CBut in 2022, U.S.
Speaker Cand German law enforcement took down Hydra.
Speaker CGerman police seized its servers and confiscated 23 million euros worth of Bitcoin.
Speaker CInterestingly, police said that there were 17 million customers and 19,000 vendors registered on the site.
Speaker CNow, if we Fast forward to December 2024, a man named Stanislav Moiseyev, claimed by Russian law enforcement to be the founder of Hydra, was sentenced to life in prison alongside 15 others who were given varying sentences of between eight and 23 years.
Speaker CBut again, like we saw with RAMP, Lenta Ru reported that those proclaimed to be the admins of Hydra were in fact just a darknet drug shop called Hydra, which operated on the Hydra marketplace, not the admins.
Speaker CBut the story doesn't end here.
Speaker CHydra had completely changed the game with the fall of Hydra.
Speaker CAs befitting the name, when one head is cut off, two more sprouted in its place as the darknet market landscape servicing Russia fragmented.
Speaker CWhich brings us to today, no one market has reached the monopolistic levels of Hydra.
Speaker CBut new darknet markets such as Mega, Blackspruit, omg, omg, and Kraken have certainly picked up the baton.
Speaker CVisually, Hydra was nothing like the darknet markets in the west, which are kind of basic looking.
Speaker CThese sites look really good, highly stylized and user friendly with shops that seem to really care about the brand image, albeit those brands are often taken from some western sources.
Speaker CSo there was this one that called itself Pokemon Go and rather appropriately used the character Psyduck as one of their main characters.
Speaker CThen you had the more obscure things like Wagon Wheel Chocolate snack.
Speaker CYou had the Jon Snow shot which showed the Game of Thrones character Jon Snow with white powder on the end of his nose.
Speaker CYou had Batman, Google, Elon Musk, DuckTales, Johnny Bravo, Mike Tyson, Bayard, Scooby Doo, even one named after President Putin.
Speaker CBut my particular favorite was the shop named after the cartoon Pinky and the Brain.
Speaker BDarknet markets in general, I've seen lots of them come and go.
Speaker BAnd one thing that's pretty consistent in Western Darknet markets is what they look like, the visual.
Speaker BSo you go onto a Darknet market and on its landing page you'll see a string of different drugs, sometimes with the name of the vendor written on a piece of paper next to the drugs to prove that the vendor has the drugs that they're advertising.
Speaker BAnd it's a pretty straightforward e commerce market.
Speaker BNot a lot of great visuals necessarily and it's pretty standard stuff.
Speaker BWhen I first went onto a Russian darknet market and got into Hydra for the first time, what really struck me straight away was the visuals.
Speaker BBecause the level of graphic design on the landing page for every single vendor's store was just so far beyond what had been achieved in the West.
Speaker BAnd also the focus was on the vendors rather than the products.
Speaker CThis attention to the visual visuals of the website and wider marketing strategies have been taken to another level by the current crop of markets as they compete for customers.
Speaker AHere's Max, what they had to do, unlike Hydra, really, they really had to sort of show off.
Speaker AAnd they really had to say to everyone, you know, Russia's huge drug buying and also drug producing market, they had to say, look, we are the big guys.
Speaker CLet's look at a couple of the net markets and how they market themselves.
Speaker CFirst, let's focus on online, specifically Mega, which is fronted by the paternal character of Moriarty.
Speaker BHere's Patrick, one of them, where Moriarty kind of talks a lot about the film Limitless.
Speaker BFor those of you who remember, this is a film about a man who gets given a drug that allows you to access all parts of your brain and become super, super intelligent and turn into a mini superhuman and live his best life.
Speaker BHe basically is describing aspects of how you should live your life as a young man in Russia, whilst clips from this film are being played.
Speaker BAnd he's doing this kind of Jordan Peterson, like, you know, Clean your room, be more real about getting a job, wake up every morning as early as possible and get on that hustle and that grind.
Speaker BIt's like a mix of the red pilled work culture and politics and hustle culture all mixed in with actually selling pills and Russian darknet markets.
Speaker BSo yeah, it's a unique social media product and I haven't ever seen anything like it before.
Speaker CSo Moriarty is a smartly dressed, golden skull mask wearing professor and it's a fascinating choice of name.
Speaker CFor those that don't know Professor Moriarty was a character from the Sherlock Holmes novel.
Speaker CHe was the archetypal supervillain described by Holmes as the Napoleon of crime Watson.
Speaker CHe is the organizer of half that is evil and nearly all that is undetected in this great city.
Speaker CHe is a genius, a philosopher, an abstract thinker.
Speaker CHe has a brain of the first order.
Speaker CWhen you take this quote and then analyse the videos that are released, mega's Moriarty likewise takes on this philosophical, particular, paternalistic, moralistic and yes, criminal Persona quite well.
Speaker CIt's a fitting name in my view.
Speaker CHere's Max.
Speaker AA lot of this marketing is done with extremely high quality, very well watched videos by these sort of figureheads of these organizations.
Speaker AFor example, Mega Market has got this guy called Moriarty who some of his videos have been watched millions and millions of times.
Speaker AHe's a bit of a sort of a, you know, he's a masked guy, you know, very high quality visuals and music and imagery and graphics.
Speaker ADefinitely the sort of, you know, Hollywood pop star level video quality.
Speaker APersuading people how a career in the drug trade is, is the best thing to do.
Speaker CThere are other characters associated with these darknet markets.
Speaker CFor example, Black Spruce has Jessica Ocean, an often glamorously dressed woman always wearing a mask that covers her entire head bed, decked all over with silver studs like the ones that skater kids wore wore on their belts in the 2000s.
Speaker CThe studs glitter and sparkle as she moves like Moriarty.
Speaker CJessica's videos are highly produced and cover topics as diverse as how to keep your area safe and how to protect yourself from fraud.
Speaker CBoth important issues for sure.
Speaker CAnd it's always welcome getting advice such as this, particularly when it comes from a darknet marketplace that sells nothing but illegal products and services.
Speaker CThere was this one video from Jessica Ocean that made me laugh.
Speaker CShe was interviewing a cladman, Jessica in her beautiful silver all over head mask and the cladman wearing a black balaclava with sunglasses.
Speaker CNow what makes this funny is that the voices are clearly recorded separately.
Speaker CSo essentially you're just watching two people gesturing in a bizarre way.
Speaker CJessica's movements are quite unnatural, to put it mildly.
Speaker CFor some reason, she reminds me of a lava lamp.
Speaker CHer head moves like one of those bobblehead figures and her hand flicks around like a conductor.
Speaker CThe whole thing is just weird.
Speaker CMoriarty is much more effective in his performances.
Speaker CIn addition to these, markets have used influencers to push their websites.
Speaker CFor example, Julia Finesse, a once prominent social media star, frequently talked about where to buy illicit drugs and was paid by Kraken to tattoo their logo on on her neck.
Speaker CHer boyfriend, a rapper, was also paid to advertise the markets.
Speaker CAside from the online world, these darknet markets have practiced some high profile guerrilla marketing tactics in the real world.
Speaker CFor example, Hydra was taken down in April 2022.
Speaker CJust a few months later, in December of that same year, Kraken like Hydra choosing a mythical beast as their name and a market clearly trying to emulate the look of Hydra.
Speaker CAnd when you look at their logo, you can see the similarities.
Speaker CAnyway, a black bus with the Kraken logo on it was left sprawled across a couple of lanes of the new Arba Avenue in Moscow.
Speaker CNow this is a major street.
Speaker CIt takes you right into the heart of the city.
Speaker CHere's Patrick.
Speaker BThere have been a lot of these publicity stunts.
Speaker BThey're kind of guerrilla marketing events.
Speaker BYou mentioned the bus that was plastered across two lanes of traffic with Kraken emblazoned across it.
Speaker BWe've also seen recently outside the Duma, they released a balloon with a banner for Kraken Market with a QR code underneath it.
Speaker BSo it was just flying over Red Square.
Speaker BAnd we've also seen billboards.
Speaker BThere was one for Black Spruit Market showing its mascot, Jessica Ocean, next to a gas station somewhere.
Speaker BWe've had sometimes a van with speakers in it blasting music with the market and a QR code written on the side.
Speaker BAnd not just the markets themselves who've done this.
Speaker BI've seen this happen with vendors as well.
Speaker BSo the vendor networks.
Speaker BSo in one video I have, it shows a shopping mall and someone is throwing money off the top of the shopping mall.
Speaker BAnd stamped on each note is the name of a drugstore on its telegram group.
Speaker BSo it's just a very sneaky way of getting people to pay attention to something.
Speaker BBut that's the kind of high level stuff.
Speaker BAnd at the lower level, you know, every day you've got people who are hired by markets to go and put graffiti out for drugstores.
Speaker BIndividually, but also for Darknet markets.
Speaker BAnd you have these telegram numbers or links to Darknet markets pasted up in all cities of Russia.
Speaker BAnd it's a problem.
Speaker BIt's a serious problem.
Speaker CThese brazen marketing campaigns were also combined with attacks on one another.
Speaker CSince the fall of Hydra, the different heads that emerged have fought on and offline for supremacy.
Speaker CSince Russia invaded Ukraine in 2022, we've been tracking the cybercrime landscape in this region and there is a paper covering this due to be published in the near future.
Speaker CBut as part of this monitoring, early on we started hearing about this group called Killnet, which is a pro Russian hacktivist group run by a hacker who went by the name Killmilk to.
Speaker CSo Killnet made a lot of noise in 2022 and 2023 with DDoS attacks against targets in NATO countries such as the UK's Royal Family website.
Speaker CAirports in the US and one attack on Latvia led to the government there designating the group a terrorist organization.
Speaker CBut at the same time, Killnet had a connection with Solaris, one of the markets that emerged after the fall of Hydra, carrying out attacks on rivals such as Rutor.
Speaker CEventually, Solaris was taken out and absorbed by Kraken.
Speaker CNow killnet has suffered some internal issues and a change of leadership.
Speaker CKillmilk was sidelined and the operation was handed over to another group called Denon Club.
Speaker CDon't worry, I'm getting to the relevance of this Little Detour.
Speaker COn 10th January 2024, Denon Club exclaimed in a fairly grandiose way, calling all Darknet users and dealers, dear friends and colleagues, I, the owner of the hacker group Denon Club, officially declare it.
Speaker CThe Kraken platform will cease to exist within two months.
Speaker CYou may not believe me now, but so that no questions arise in the future, we have warned you.
Speaker CAfter Kraken, we will end the existence of Blackspruit.
Speaker CThe patriotic hacktivism doesn't pay as well as Moriarty, I guess.
Speaker CYou see, it appears that Denon Club has allied itself with Mega.
Speaker CSoon my colleague Moriarty and I will provide you with a new place to spend time, as well as secret knowledge.
Speaker CIn 2024, we will become a monopoly and no other project will physically be able to continue to exist.
Speaker CMeanwhile, whilst the dartnet markets vied for position, the structures put in place, first by Ramp and then Hydra, have continued to flourish.
Speaker CAnd the dead drop method has become the way to purchase illicit drugs.
Speaker CAnd no position is more emblematic than the Cladmen, the couriers we heard earlier about.
Speaker CThe Cladmen's Bible, which teaches and advises prospective Cladmen on how to operate, where to stash drugs, how to do it, and so on.
Speaker CFor example, if you go to a forest on the edge of town and it's been snowing, bury the drugs and mark the spot by placing a stick in the ground.
Speaker CTake a picture and then send it to the buyer.
Speaker CThen cover your tracks in the snow.
Speaker CSounds like a great idea.
Speaker CRight, here's Patrick.
Speaker BI was reading this one guide and it was written by a cloudman.
Speaker BHe was addressing his fellow Cladmen.
Speaker BHe was saying, a lot of you think you're really smart because in the winter you do this thing where you'll attach your little amount of drugs to a stick and you'll go into the forest and you'll just stick the stick in the ground so it looks like a little shrub that's poking out, and on the bottom of it is the drug packets.
Speaker BAnd it's very easy to take a photo.
Speaker BThe snow hides everything else.
Speaker BIt's great, right?
Speaker BThe problem is, is that a lot of you use the same sticks.
Speaker BAnd so me and my friend went into the forest this week and we just started pulling on every stick we could see, and this is what we found.
Speaker BAnd he shows this picture with this big bunch of sticks with lots of little drug packages on the bottom of them.
Speaker BAnd he's like, we just basically took, say, about 11 or 12 drops just by putting on sticks.
Speaker BIt's like, so you think you're being innovative and you're not being innovative, you're being an idiot.
Speaker CYet Patrick shared a video from Mega, and there was one vendor who was advertising Cladman job opportunities.
Speaker CThese adverts included the terms and so on.
Speaker CBut what was most interesting was the reviews from people that had taken up the opportunity.
Speaker CAll of them were from March 2024, and there were at least 10 people who had responded.
Speaker CAnd this is just one store of thousands across the marketplaces.
Speaker BI would put the number somewhere between four, four and 5,000 different vendor shops.
Speaker BAnd when I say a vendor shop, I mean four or five thousand networks of people where there is someone at the top who is managing the whole process.
Speaker BThere is somehow some drug supply going on, whether that's imported or produced.
Speaker BAnd then there are drug runners who are couriers and people who are storing drugs who are out in different cities in Russia going and delivering packages.
Speaker BAll of that, Those job roles are all under one store, and there are 4,000 to 5,000 stores.
Speaker CI hopped onto one of these.net sites and found an advert.
Speaker CFrom the questionably named gangbang shop offering work as a cladman to get the position, you had to pay for the pleasure.
Speaker CThis down payment was 3,000 rubles, which is around $30.
Speaker CBut not everyone has the money to pay, so they're required to share something that is, in my opinion, far more valuable.
Speaker CTheir personal details.
Speaker CHere's Max.
Speaker AThe shops don't know who the couriers are, the couriers don't know who the wholesalers are, all this kind of business.
Speaker ABut where that anonymisation disappears is sometimes when a courier wants to join a shop and they don't have, say, whatever it is, 20 quid, 50 quid deposit that they have to give before they start the job if they have literally no money whatsoever.
Speaker ASo it's obviously all the, the poorest couriers who have to do this.
Speaker AThey have to provide their passport, their ID details to the shop by way of a deposit.
Speaker ASo if they mess up or the shop wants to get hold of them, it's that much easier for the shop and its thugs to track them down if they've got the photo and the name and address and all this stuff.
Speaker CIn Max and Patrick's report, Breaking Clad, they interviewed a shop owner who had a store on Hydra before moving to Telegram and now Kraken.
Speaker AHe told me that he operated in two cities in Russia.
Speaker AHe employed 40 clad men, so that's 40 couriers.
Speaker AHe had three warehouses.
Speaker ASo those are the warehouses is the place where the produced drugs, the drugs that they buy off the producers are stored in big amounts and then they are then portioned out to go to the couriers who then lay them out in various parts of the city.
Speaker AHe also had this interesting character that he described as a mentor, but you could also describe as Fagin.
Speaker ASo he was basically someone whose job was to train up the couriers as to how to properly dead drop drugs, what materials to use, where to do it, what not to do.
Speaker AThat was quite a key person in his organization.
Speaker AIt also meant that he never had any contact with the couriers himself.
Speaker CSo there are thousands of these shops.
Speaker CObviously each shop will vary massively in scale, but we're potentially looking at a huge workforce of cladmen across Russia and it illustrates the size of this market and the potential opportunities for those willing to take it.
Speaker CIn 2022, when Russian forces surrounded the city of Mariupol in Ukraine and battered the city and those living in it, basic necessities were scarce, but drugs still found their way in.
Speaker AAlmost immediately, you were getting Russian soldiers buying dead drop drugs.
Speaker AUsing telegram, buying stimulants and cannabis online shops, alerting people that there were drugs to be bought.
Speaker AThey were advertising for clad men, advertising for producers making special offers for new subscribers.
Speaker AEven though there were problems with access to necessities such as water at the time, in places like Mariupol, Kherson, you were getting ample supplies via the darknet dead drop system of mephedrone and alpha PvP.
Speaker CNow, who makes up the couriers is an interesting question.
Speaker CIn November last year, in Apatiti, right in the very north of Russia, near the border with Finland, Finland and Norway, three people were arrested, two of which were just 17.
Speaker CThese were cladmen.
Speaker CThey had taken a large cache of drugs and split them into 32 smaller packages and distributed them around the town.
Speaker CBecause of the age of two of the defendants, term limits are limited to a maximum of 10 years.
Speaker CAnd according to a Russian lawyer interviewed by the GI who specializes in representing those arrested on drug offenses, most couriers are aged between 18 and 25.
Speaker CTo get one of these positions, many of the adverts are on the Darknet markets or associated social media platforms like Telegram.
Speaker CYou can safely assume that the prospective cladmen had some knowledge of the platforms themselves and have probably used them before.
Speaker AI would think that most people who are couriers are probably drug users who have been involved in buying drugs on these forums and using these apps on Telegram.
Speaker AOn the darknet, they're very familiar with the whole system.
Speaker AThey know how to do it, they picked it up tons of times for them or their friends and now they're turning their sort of hobby into, into a job.
Speaker ASo I, I think probably a lot of them are occasional drug users.
Speaker ABut there is a very real risk that if you are addicted to drugs.
Speaker CThe old moniker of don't get high and you're own supply, as Frank Lopez prophetically warns Tony Montana in the Scarface movie.
Speaker AYeah, don't get high on your own supply.
Speaker ALike it's particularly in Russia, it would be extremely dangerous thing to do is to start if you've got a terrible addiction and as soon as you see some drugs, if you're a courier, you want to kind of like snort the lot.
Speaker AI mean it could be potentially deadly in Russia specifically, you know, even though it's run by this supposedly anonymous system, the punishments and the downsides of it are a lot worse.
Speaker AIf you mess up, you can get a beaten within an inch of your life and if you get caught, you can get eight years in a flipping prison in Siberia.
Speaker CAnd this is an important point.
Speaker CIt's the couriers that are at the most risk.
Speaker CThey are the front end of the entire system.
Speaker CAnd Russia has extremely strict policy on the possession of illicit drugs, where culturally drugs are seen as symbolic polluters of the country.
Speaker CYou see, there is a law called Article 228 and it concerns the illegal acquisition, storage, transportation, making or processing of narcotic drugs.
Speaker CAnd then 228.1 which covers the illegal making, sale or sending of narcotic drugs.
Speaker CAccording to the law, depending on the level of the crime committed, a person can be sent to jail for up to 20 years.
Speaker CAs we heard earlier with the recent sentencing of the founder of Hydra, sentences can actually be much higher.
Speaker CSo for those that are caught who in the context of the darknet markets are usually cladmen, they can get heavy sentences, or they could join the army and fight in Ukraine.
Speaker CRecent legislation passed in Russia has closed a loophole that limited the enlistment of suspect suspected criminals or convicts.
Speaker CAlthough we know that the Wagner group have already heavily recruited from prisons.
Speaker CAccording to the numbers from 2018 acquired by Lenta.ru, over 40% of those convicted under Article 228 are between 18 and 29.
Speaker CThe majority get between three to five years.
Speaker CBut it's worth saying that these tough sentences have contributed to the rise of the dead drop method, because it's highly anonymised from production to purchase to delivery, with less of an opportunity to be caught.
Speaker CNow, there is a high turnover for cladmen, but there is also some scope for career progression.
Speaker CFor example, the most trusted couriers can become wholesalers, sometimes called stockists or warehousers.
Speaker CThis role involves working with the carrier or transporter who moves the drugs around the country by various means of transport.
Speaker CThe wholesalers then store large quantities of illicit drugs, replenishing the master stashes for the cladmen to access.
Speaker CBut of course, if you get caught, you will go to jail for some time.
Speaker CAnd so it's well paid.
Speaker CWholesalers and carriers must provide a large deposit to secure a position.
Speaker CBut both positions can be lucrative.
Speaker CA wholesaler can earn up to $21,000 a month.
Speaker CCarriers can earn $5,000 for a week's work or $2,000 per trip.
Speaker CBut carriers are vulnerable because if they get caught, not only do they get long prison sentences, but it also puts law enforcement in charge of the drops.
Speaker CSo the wholesalers and cladmen are also at risk of arrest.
Speaker CThe carriers are the ones that receive the drugs directly from the producers.
Speaker CAnd that brings me to the other progression option for cladmen.
Speaker CBecoming A producer or chemist.
Speaker CThere was one advert in the Breaking Cloud report from Blacksburg and it was for a chemist, the producers of the drugs the AI produced.
Speaker CImage has a man in a white coat surrounded by glass bottles and scientific equipment.
Speaker CBehind him are shelves of bottles like an apothecary of old.
Speaker CAnd to his side is a blue and white bird that looks like an ice phoenix.
Speaker CAnd it says Chemist highway to heaven.
Speaker CAnd this is it.
Speaker CThese platforms actively encourage people to become producers.
Speaker CHydra had some amazing how to videos.
Speaker CYou can literally watch a step by step guide on how to produce different synthetic drugs.
Speaker CHere's Patrick.
Speaker BIt basically had a beautiful graphic logo of Hydra at the beginning.
Speaker BThen some Russian techno music as a guy in a lab coat began to construct all of this in front of you step by step and show you exactly what material you needed and exactly when to turn this on, to turn that off.
Speaker BLike it's.
Speaker BYou could not get it wrong.
Speaker BIt's that simple to follow.
Speaker BThat's not a vendor who's done that for other vendors to learn from.
Speaker BThat's the market that's done that.
Speaker BThat's the platform itself.
Speaker BSo they're aware that they make money when people make sales.
Speaker BAnd so they're actively encouraging and helping grow the number of methadone producers, the number of alpha PVP producers within the country, because they know that if there's more people producing it, there's more people needing to sell it.
Speaker BAnd where are they going to sell it?
Speaker BThey're going to sell it on Hydro, they're going to sell it on Kraken, they're going to sell it on blacksmrug.
Speaker BAnd so I actually think that it's a really rare case where we're seeing Darknet markets really affecting the drug appetites of an entire nation or an entire region.
Speaker CThis encouragement and push to create more and more producers has helped push synthetic drugs further and further into Russia, even into the most remote parts like Siberia.
Speaker CMarkets have dedicated spaces on their sites to purchase equipment and precursors.
Speaker CThey have production forums and even consultations with producers to learn how to set up a lab.
Speaker CProspective producers can even buy precursor kits which allow people to quickly create drugs and sell them to a network for profit.
Speaker CThey also provide testing services so that producers can be certified, just like Hydra used to do.
Speaker CThese markets have legitimately driven consumption by democratizing the production of synthetics.
Speaker CAnd then other than the shop owner, you have the most important position, the shop operators.
Speaker CAccording to one advert, they are the key employee of the shop.
Speaker CThey are the operators, operational Managers and work purely online and are well paid for their services.
Speaker CThey deal with orders, locations, recruit cladmen, and direct the couriers to the master stashes.
Speaker CAnd they sometimes help cladmen who were caught by law enforcement.
Speaker COne former operator who spoke to the gi worked for a shop that sold methadone, methadone and alpha PvP as well as cocaine.
Speaker CHe said that one of the shop's best cladmen was arrested, and so they helped to sort out a bribe to get the courier released.
Speaker CAlongside all of this, they also dealt with customer disputes.
Speaker CAnd so what if you do have an issue with your order?
Speaker CLike you couldn't find it?
Speaker CWell, these sites, of course, offer complaint services.
Speaker CI jumped onto one of these marketplaces and had a look through some of the complaints.
Speaker CFirst, there was one complaint about a store that was accused of not actually depositing the drugs.
Speaker CThe store sells empty addresses.
Speaker CThe second purchase is also not successful.
Speaker CThe treasure was not laid.
Speaker CIt has no connection with the cladman.
Speaker CA second complaint has been opened.
Speaker CHe cannot specify the place and a photo of the treasure.
Speaker CThe information that is attached to the order is not enough.
Speaker CThe store does not conduct fair business.
Speaker CI ask you to return 50% of the purchase price.
Speaker CBut most of the decisions seem to fall in favor favor of the stores.
Speaker CThe store violated the rules by selling another substance instead of the purchased one.
Speaker CAccording to the evidence provided, both the courier and the store admitted their mistake.
Speaker CThe store employee even asked me to request a refund.
Speaker CBut today I saw that the dispute was closed in favor of the store.
Speaker CThe moderator acted unfairly.
Speaker CI ask you to reconsider this decision.
Speaker CHonestly, if you were able to conduct some word frequency analysis on these forums, I bet one of the top phrases would be something like, I do not agree with the moderator's decision.
Speaker CHere's Patrick.
Speaker BIf you look at what customers say about their experiences on darknet markets, they will often report that most disputes go the way of the seller rather than the way of the customer.
Speaker BSo let's say I don't find the package that I've been promised and I go into the platform.
Speaker BThen the marketplace is meant to look at the seller, what their trust score is, and then look at me as a customer and assess, okay, who's telling the truth here.
Speaker BThe difficult thing here is that I'm unlikely to have as much of a trust score as the seller.
Speaker BSo this seller, this network has handled, I think some of them are in the high hundreds of thousands of sales, right?
Speaker BSo, you know, they've handled so many sales, whereas I have only made two purchases on the site.
Speaker BSo what's more likely that this well oiled drug selling machine is lying or that some guy is just trying to get lucky, take his drugs and then say, oh, I didn't find them, I want my money back.
Speaker BThat's part of this, which is that, you know, there's, there's more data on the side of the seller than there is on the customer.
Speaker BBut that's one explanation for it.
Speaker BThe other explanation for it is that the Darknet markets themselves, like Kraken and Blacksmith, are charging the vendors rent to be on their platform, but they also want to retain the top vendors.
Speaker BThey want to retain the ones who are doing the most business because that's how they drive customers to their site.
Speaker BAnd so it may be that there's just a certain amount of you scratch my back, I scratch yours, and they decide against the customer anyway.
Speaker BBut yes, essentially the review system is not perfect.
Speaker CAnd that brings me to the dead drop locations themselves.
Speaker CNow we've already heard about the Cloudmen's Bible, a document that describes essentially how to do the job well, including pictures of example hiding places and the pros and cons of each, how not to get caught, how to dress, and so on.
Speaker CBut the problem is, if I know this, then I can guarantee that many others in Russia much more familiar with this dead drop method of dealing are as well.
Speaker CHave a listen to this complaint, which starts with an expected line.
Speaker CI do not agree with the moderator's decision.
Speaker CI made an order on the Kraken site, arrived at the place, immediately, saw the difference in photos from afar, took a photo before the start of the search, search opened a dispute, sent a photo to the store with a description of the problem.
Speaker CThe store invited a moderator referring to the fact that I did not search well and the treasure should be in place.
Speaker CAnd how can you search well in a wall there is only a hole and bricks, then made a decision in favor of the store.
Speaker CI do not agree with this decision because the treasure was stolen by someone and the place was touched before me.
Speaker CIndeed, what if someone is watching the cladding admin, maybe even following them, watching where they stashed the treasures?
Speaker CWell, that is a real problem.
Speaker CAnd these sneaky individuals have a name.
Speaker CThey're known as Seagulls.
Speaker BHere's Patrick People who are aware of the trade but don't have the money or don't have the inclination to actually go and buy drugs this way.
Speaker BSo they just go out into the streets and they try and find people's drops without having to pay.
Speaker BAnd so they'll go and look in all of the normal places, like window sills and what have you.
Speaker BThey'll go into the forest and see if anyone's making drops and try and follow them around.
Speaker COne complaint talked about how the Cladmen had placed the drugs inside a wall.
Speaker CThe purchaser couldn't find it on the first attempt, so went back armed with a hammer and started hammering into the wall.
Speaker CThis was the exterior of a tower block.
Speaker BWell, that story you've just told us is actually, actually, you know, emblematic of a problem this creates.
Speaker BThat is true in the Russian context and not true in the west, because people are going out and they're placing drugs in public, right?
Speaker BAnd there's all sorts of risks to going out and placing drugs in public.
Speaker BIt's not like in the west where it's coming to someone's house and it's in a package and it's got their name on it.
Speaker BSo it's very unlikely anyone else is going to open it.
Speaker BThese drugs can be found by dogs and pets and kids and whatever, but also if there's a problem with the delivery, someone can end up doing damage like you've just described, hammering into a wall to find a package.
Speaker CBut being a seagull is a risky game because if you get caught, you will likely get a visit from a sportsman.
Speaker CSo the thing is about Darknet marketplaces, the idea around them, at least initially, initially, was a place where users could safely get hold of their drugs, reducing the risk of violence against customers and users that surrounds the illicit drug trade.
Speaker CIndeed, some academic papers at the time described the Silk Road as a paradigm shifting criminal innovation and a massive, relatively safe worldwide market for drug dealers who sold there.
Speaker CBut unfortunately, even the Silk Road, with all its libertarian ideals, could not avoid violence.
Speaker CUlbricht himself ordered the murder of a Silk Road moderator who he believed had turned on him, a death which was faked by US law enforcement.
Speaker CThe whole Silk Road case got very messy towards the end.
Speaker CA number of US agents were caught up in a scandal over stealing Bitcoin from the site.
Speaker CBut it's been over a decade now since Silk Road collapsed.
Speaker CToday, in Russia, where the markets are much more sophisticated and make a lot more money, violence is also quite prevalent, and it comes in the shape of a position known as sportsman.
Speaker CNow, these tufts have long been associated with organized crime in Russia.
Speaker COften recruited from gyms, they comprise wrestlers, weightlifters, boxers and martial artists, hence the nickname for the Darknet marketplaces.
Speaker CShops advertise for these positions.
Speaker CSome claim to have dedicated teams specifically for their shop.
Speaker CSome freelance sportsmen offer their services on Ruter or Telegram.
Speaker CSportsmen work under the guidance of shop operators.
Speaker CAn advert from Mega, which you can find in Max and Patrick's report, Breaking Clad shows an AI generated picture that looks like something from the Street Fighter video game with a caption saying that they are looking for athletic punishers to join our team for the punishment of guilty couriers and that the job is suitable as a part time job with a smiley face emoji.
Speaker COne job can get you between 15 and 50,000 rubles.
Speaker CThat's about 150 to 500 US dollars.
Speaker BThey are people whose job it is to make sure that everyone who is in the network has a sense of fear about their job.
Speaker BSo basically, if you're accused of stealing from a Russian dead drop network, then it's likely that sportsmen will visit you and two guys will turn up on your door and they might talk to you and threaten you.
Speaker BThey might just set fire to your building or to your home and they might pick you up, put you in a car, drive you out to a forest somewhere and beat you up, cut off your fingers, break your bones.
Speaker BI mean, there's a whole range of different punishments that happen online.
Speaker BAnd then they film this act and then they put it on Telegram so that everyone can see what happens when you steal from a darknet market.
Speaker BThere are several sportsman channels which are dedicated to just sharing these videos.
Speaker CPatrick shared some of these channels with me and some of the videos you find on there are truly horrific.
Speaker CThere are thousands of these videos circulating online.
Speaker CYoung Russians being beaten, abused, sexually assaulted in their bones broken whilst being forced to apologize to the darknet vendors they've deemed to have offended.
Speaker CSome have even been killed.
Speaker CThere was one video that particularly stuck with me and it was of a young girl, maybe in her late teens, with long hair.
Speaker CIt's dark and there are some masked men standing over her.
Speaker CThe camera is lighting up her face and she looks petrified.
Speaker CA sportsman kneels in front of her and brandishes two pairs of scissors.
Speaker CHe's telling her to cut her long hair and she is crying and pleading with them.
Speaker CIt's hard to watch.
Speaker CShe tries to get up but they shove her to the ground and she is wailing with fear.
Speaker CEventually, one grabs her by the hair and she is cowering and crying in front of him, yanks her head back, takes the scissors and starts cutting and cutting her hair.
Speaker CThe sportsman then takes his hand and holds it over her mouth to keep her quiet before grabbing a small plastic bag.
Speaker CInside is a bottle and he begins to pour it over her head.
Speaker CAnd you can see the confusion on her face as she feels this liquid on her head.
Speaker CAnd she tries to wipe it away, but that just spreads the liquid further and it's all over her hands, face and head.
Speaker CIt's bright green.
Speaker CAnd then they seem to let her go and she runs off camera.
Speaker CThat liquid is important here.
Speaker CThey've marked her with something called brilliant green.
Speaker CIt's a green solution used in antiseptic products but can also be toxic.
Speaker CBut it also sticks to the skin and can be very, very hard to remove.
Speaker CAnd people know what this mark means.
Speaker BWhat's very unique about this is that this is the first time we've seen violence in Darknet markets as a regulatory mechanism.
Speaker BWe were obviously aware of violence.
Speaker BEveryone is in drug networks at the street level across all countries.
Speaker BBut it's never really been seen in Darknet markets in the way it has with Russian Darknet markets.
Speaker CAnd finally, the person overseeing an entire shop, the shop owners themselves.
Speaker CWhat about them?
Speaker CWe heard earlier from Max about an interview he conducted with a shop owner who worked in the regions rather than the major cities like Moscow and St.
Speaker CPetersburg and ran a decent sized operation including 40 cladmen.
Speaker CHere's Max.
Speaker AHe employs a lot of online staff to keep the whole thing running.
Speaker AOn a good Friday he sold 400 grams of methadone, which is a pretty sort of decent amount.
Speaker AIt's certainly not small scale.
Speaker AAnd he was saying overall he estimated he made the equivalent of almost $1 million a year revenue.
Speaker AAnd in saying that, he said that he had never had any problems with the law.
Speaker AHe'd also never seen any of his friends shops being busted.
Speaker AAnd when I asked him what the best thing about his job was, he said that it was the money and the freedom which his job and that money gave him to not have to rely on the Russian regime.
Speaker AAnd he's also a massive fan of London.
Speaker AHe's visited London a lot of times.
Speaker COne shop owner told the GI that thousands of shops are dismantled every year, but the shop owners are almost never arrested.
Speaker CAnd that's it.
Speaker CThese people are like shadows.
Speaker CThe anonymized nature of these darknet markets means that shop owners at least currently can just rebuild, adapt and carry on.
Speaker CWhereas Cladmin and the like, well, things don't look good.
Speaker AThe low hanging fruit will always get picked up.
Speaker APolice in Russia, in Georgia, in Kazakhstan, you know, a lot of the countries which are operating these, this Russian drug dealing model they're all getting wise to the dead drop system.
Speaker AThey know the usual places that people dead drop, so they hang around there and you know, lay traps for, for people.
Speaker ASo, so they're getting pretty good in picking up the young amateur couriers and slinging them in jail obviously sometimes to get carded off to die on the front line.
Speaker AIn Ukraine, there's a lot of quite big drug seizures, a lot of wholesale level methadone seizures, not just picking up the little kids with the methadone.
Speaker ASo things are being done but like there is definitely evidence to show that none of the big shops and none of the big platforms have been got into by the Russian authorities.
Speaker CSo how have Russian law enforcement responded to this illicit market?
Speaker CWell, there was this one story from a small village called Obukovets in Leningrad Oblast, not too far away from St.
Speaker CPetersburg.
Speaker CIn 2019, police acting on intelligence about a string of car thefts raided an address and found 3 tons of the synthetic drug Alpha PvP and seized a lot of precursors capable of producing another six and a half tons.
Speaker CThe man behind it was sentenced to life in prison.
Speaker CHis three accomplices were given between 17 and 20 years for their part.
Speaker AThat case was, was interesting.
Speaker AYou know, I think it shows that there was a drug lab found.
Speaker ASo these criminals who were involved in stolen cars were also involved at one stage of the drug industry, I production.
Speaker AThat's not surprising that there will be a group who will be good at stealing cars, but they will also have someone who knows how to make methadone.
Speaker ASo they'll have a little methadone lab going on as well in the, in the sort of the back room of, of the stolen car lot or whatever it might be.
Speaker AThey'll know their shop that they sell that, those drugs to, but they'll just be sort of like a bit part player in a much, much bigger edifice that's going on behind them.
Speaker CObviously this is just one case, but law enforcement essentially stumbled upon this production lab.
Speaker CBut what about the wider discussion and action against this illicit market?
Speaker CSome of you may have heard of Ekaterina Mizulina, the head of the Safe Internet League, one of those banal names that governments use across the world to actually mean censorship.
Speaker CMs.
Speaker COlina seems to scour social media for things she dislikes and then calls them out publicly, sometimes threatening people with military service in the process.
Speaker CRemember I mentioned that social media influencer Yulia Finesse.
Speaker CWell, the Safe Internet League reported her to the authorities and she was arrested in 2023.
Speaker CAnd this is Where Moriarty from MEGA returns to our story because he was involved in a very public spat with Misalina.
Speaker CIn one typically well produced video, he congratulated her for helping to draw attention to Mega and then goes on to explain why her campaign against MEGA and other darknet markets will fail, including highlighting the good they do through their medical services.
Speaker CThere was even one video shared by Mizzalina which showed a huge bunch of flowers allegedly sent to her by Moriarty.
Speaker CShe, with the help of two men as the bunch was that large, subsequently threw them in a skip before saying, I don't accept flowers from enemies of Russia.
Speaker CIt's worth noting that currently none of the major markets have been shut down by Russian law enforcement.
Speaker CSo the question is why?
Speaker CThere is no doubt that the overt marketing and increased consumption of illicit drugs will not please state officials at all.
Speaker BHere's Patrick, you do have aspects of the Russian government debating this stuff and coming out and saying, you know, this is bad and we should do something.
Speaker BThink about it.
Speaker BWhat's unclear is what can they do about it because these markets are extremely wealthy.
Speaker BAnd it's not just the markets who are doing these paid promotions.
Speaker BIt's individuals who are seeing an opportunity to make money and engaging in a bit of entrepreneurial ship and saying to a market, hey, I reckon I could do a big publicity stunt for you.
Speaker BWould you pay me to do it and what have you.
Speaker BAnd so it's hard to see how you solve for that problem given how widespread it is and how much money is accessible for doing a publicity stunt like that.
Speaker CIn November last year, officials within the State Duma raised concerns around Mephedrome, specifically seeking more stringent measures to combat drug trafficking and education for young people about the dangers of drugs and drug addiction.
Speaker CAnother official suggested that all Russians need to be tested for drugs, starting with government employees, before going on to suggest that law enforcement need to focus on the producers and the shop owners, not just the cladmen.
Speaker CAnd finally, Deputy Chairman of the State Duma Committee on Health Protection, Alexei Kurini said that this is a state problem and it should be addressed by the government using all available resources.
Speaker CAnd this is certainly an uphill task.
Speaker CAccording to Lenta.ru who did another investigation into the Mephodrome market, they reported that across 15 cities in Russia, production is estimated at 40 to 60 tons per year.
Speaker CAnd finally, tackling the darknet markets could also be tricky because according to one journalist interviewed, the infrastructure behind the darknet markets is located outside of Russia.
Speaker CIn the case of the Takedown of Hydra.
Speaker CThose servers were located in Germany, which means without international law enforcement collaboration.
Speaker CThat is a difficult issue to solve in the current geopolitical climate.
Speaker CHere's Max.
Speaker ATo fight crime, which is absolutely global and international, you have to fight that with global police forces.
Speaker AAnd that's what's slowly being done.
Speaker AAnd you're right, you know, Russia is, it's isolated economically, but it's also isolated in terms of law enforcement because it doesn't have the ability to reach out to other countries and get help with tackling this particular iteration of organized crime.
Speaker ASo it really is sort of trying to fight it with two hands tied behind its back.
Speaker AYou know, the, the lack of technical expertise within the police and government compared to the people running these things, which I suppose they're probably more likely to come from the hacking community.
Speaker ASo they're going to be more like sort of people with their brains all over computers and cyber and technology, rather than your better known Russian thuggery and organized criminals, you know, the Vori and the thieves in law.
Speaker CAnd there is a serious point to this.
Speaker CIf we park the apparent medical specialists claimed by the net markets to one side, the spread of synthetics using the dead drop method is causing hidden health problems in Russia.
Speaker AThat's the thing that this particular journalist was, wanted to get across to me as someone who was living in Russia, who lives in Russia still, he was really concerned about a lot of his peers.
Speaker AA lot of the people that he knows, a lot of people he bumped into, were starting to get a problem with Mephedrone.
Speaker AMephedrone is the most popular drug in Russia and it's, it can be seen, more of a party drug.
Speaker ABut he was saying that a lot of people have ended up, you know, as, as happens with cocaine and speed and crack and other stimulants in the west, you know, some people, for whatever reason, get too heavily involved in it.
Speaker AThere's a lot of reasons why he's worried about young people in Russia who are having a difficult time of it at the moment, but they have this incredibly Moorish cheap drug which they can run to within a few minutes and grab.
Speaker AHe was genuinely worried about that and he thinks that it's, it's something that's going to come back and bite Russia up the ass.
Speaker AHe really seems it's a kind of a hidden problem.
Speaker ABut from what he's saying is that there is a sort of looming problem amongst the sort of younger generation of quite damaging drug addiction, mainly to this drug, but also, as you say, you know, Alpha PVP is also in the mix and that's just more of an extreme stimulant than methadone.
Speaker AAnd it's linked to sort of mania and impacts on mental health.
Speaker CAnd so this dead drop method began and perfected in Russia, has completely revolutionized the illicit drug market in the country.
Speaker CBut what about elsewhere?
Speaker AFor a long time it's been in Ukraine, so it almost started up at the same time in Ukraine as it did in Russia.
Speaker AAnd that system has also spread to many other countries bordering Russia, most notably Georgia, Belarus, Kyrgyzstan, Kazakhstan and other countries too.
Speaker AAnd again there you're starting to see similar drugs being used, the rise of methadone in those countries and generally the rise of synthetic drugs.
Speaker AYou're seeing labs starting to pop up, you're seeing public graffiti by way of PR and social media.
Speaker AHey, you need to get onto this site, you need to become a courier, you need to become a chemist.
Speaker ASo we're seeing all the same things being mirrored in these countries bordering Russia.
Speaker ABasically, you know, Russian speaking countries again, some of them with their own online shops, but they're using the same method.
Speaker AWe are seeing these pop up also in some countries in Europe there was a sign that we saw in Liverpool recently advertising for couriers and make drugs.
Speaker AAnd I think most prolifically in South Korea.
Speaker AWe're seeing huge amounts of arrests of people involved in darknet dead drop drug markets.
Speaker AThe similar thing here is strict anti drug regime.
Speaker ASo if there is a way of buying and selling drugs which adds an extra layer of security for people and anonymity, then this is why this system, the Russian system, is so important for me.
Speaker CThat's it for this episode of Deep Dive.
Speaker CI'd like to thank Max and Patrick for speaking to me.
Speaker CFor more information on this topic, you can find a link to the paper Breaking Russia's dead drop Drug Revolution in the podcast notes as well as any other relevant links.
Speaker CFor other research on organized crime from around the world, head over to our website, globalinitiative.net this has been Deep Dive from the Global Initiative Against Transnational Organized Crime.