Exploratory Analysis of Cryptocurrency Transactions of Darknet Drug Markets: Connections to Organized Crime

Purpose The growing involvement of cryptocurrency in criminal activities poses unique challenges and opportunities for economic crime investigations. This study aims to examine the structure and operations of darknet drug markets and their connections to organized crime, with a focus on an empirical analysis of cryptocurrency usage. Design/methodology/approach Using a software-as-a-service analytics platform and a cryptocurrency investigation tool, 100 darknet drug market cases active during 2023 were analyzed, focusing on 36 trackable cryptocurrency addresses. Findings The analysis identified three cryptocurrency addresses and darknet marketplaces with concentrated usage in the darknet drug ecosystem during 2023. These Bitcoin addresses were also associated with potential ties to various criminal activities such as money laundering, fraud and ransomware, highlighting the associations between darknet drug markets and criminal individuals, groups or organizations. Originality/value This study contributes to the drug trafficking and financial crime literature by empirically mapping the connections between darknet drug marketplaces and organized crime through cryptocurrency transaction analysis. Unlike prior research, which often focused on qualitative insights or law enforcement case studies, this study uses systematically collected transaction-level data to highlight patterns in financial flows and illicit network structures. The findings offer insights into the operational structures and illicit activities in darknet drug marketplaces and call for further understanding in cryptocurrency-enabled financial crimes.