Cryptocurrency-Driven Drug “Department Store” on Telegram
In recent years, Telegram has emerged as a new social platform among young people in South Korea, thanks to the popularity of cryptocurrencies and the widespread use of anonymous messaging apps. However, this platform is not only used for everyday communication. Recent investigations have revealed that Telegram has also become a cryptocurrency-driven drug trading “department store,” attracting numerous dealers and consumers.
These so-called “department stores” take advantage of Telegram’s encryption features, allowing buyers and sellers to conduct transactions in a relatively discreet environment. Drug dealers create dedicated channels and groups to sell various drugs, from traditional marijuana and cocaine to new synthetic drugs, and demand payment in Bitcoin or other cryptocurrencies to evade law enforcement monitoring.
Drug dealers are “hiring employees” through cryptocurrency payments
The operation of these drug trading networks is becoming more professional and organized. Reports indicate that some large-scale drug trafficking organizations even “hire” employees through cryptocurrency payments. These employees are tasked with promoting drug sales channels, processing orders, packaging drugs, and arranging secret logistics for delivery.
Drug dealers typically use the “dead drop” technique to transport drugs. They leave bags of drugs in common areas such as apartment stairwells, fire hydrants, and flower beds. Then, when the buyer safely leaves the area, they inform them of the hiding place. This informal employment method significantly reduces operational costs while increasing the difficulty for law enforcement to crack down on them.
A police officer retrieves a hidden bag of methamphetamine from an electrical box in a South Korean apartment stairwell.
Blockchain monitoring tools aiding the South Korean police?
Facing this challenge, the South Korean police are seeking new technological means to combat cryptocurrency-driven drug trading. This includes using blockchain analysis tools to track cryptocurrency transaction records related to suspected drug trades. These tools can help law enforcement identify and trace the flow of implicated cryptocurrencies, leading them to key individuals and networks involved in drug trading.
However, the anonymity and global nature of cryptocurrencies still pose unprecedented challenges for law enforcement agencies. Experts believe that in addition to technological measures, enhancing international cooperation, improving laws and regulations, and public education are all key in combating this new type of crime.
This article is authorized for reprint from: Cryptocity