Australian Drug Users and the Dark Web - ASPAD Insight 2020 Series Associate Professor James Martin - AWS

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Australian Drug Users and the Dark Web - ASPAD Insight 2020 Series Associate Professor James Martin - AWS
ASPAD Insight 2020 Series
Associate Professor James Martin

                        Australian Drug Users
                         and the Dark Web

                                                CRICOS 00111D
                                                    TOID 3069
Australian Drug Users and the Dark Web - ASPAD Insight 2020 Series Associate Professor James Martin - AWS
ASPAD Insight 2020 Series
Associate Professor James Martin

                        Australian Drug Users
                         and the Dark Web

                                                CRICOS 00111D
                                                    TOID 3069
Australian Drug Users and the Dark Web - ASPAD Insight 2020 Series Associate Professor James Martin - AWS
Presentation outline
1. What are cryptomarkets and how do they work?

2. What can cryptomarket data tell us?

3. What implications does the proliferation of cryptomarkets have
   for drug users and harm?

3
Australian Drug Users and the Dark Web - ASPAD Insight 2020 Series Associate Professor James Martin - AWS
What is a cryptomarket?
         – A cryptomarket or darknet market
           (DNM) is “an online forum where
           goods and services are exchanged
           between parties who use digital
           encryption to conceal their identities”
           (Martin 2013:6).

         – Share the following characteristics:
    •   third-party hosting and administration
    •   use of traditional postal systems to deliver
        goods
    •   decentralised exchange networks
    •   use of aliases to conceal user identity
    •   reliance on the Tor network
    •   use of encrypted electronic currency (e.g.
        Bitcoin).
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Australian Drug Users and the Dark Web - ASPAD Insight 2020 Series Associate Professor James Martin - AWS
Australian Drug Users and the Dark Web - ASPAD Insight 2020 Series Associate Professor James Martin - AWS
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Cryptomarket data
Part II
(Soska & Christin 2015
Size of the                          Percentage of active vendors by country of origin,

Australian
                                                   active products only

                                   Multiple                        Australia,

online market                     countries
                                 world/Unkn
                                                                     7.2%

                                 own, 17.0%
• 152 unique active         Other Asia,
                                                                                     UK, 12.1%

  vendors in Australia         0.5%

• 2nd highest per capita    China, 0.7%

  number of vendors         India, 0.4%                                            Netherlands
                                                                                      , 6.9%
                            Other North
• 1136 active products       America,
                               5.4%
• 40.7% of total listings
                                                                                      Germany,
  active                                                                                7.7%

• World’s highest
  proportion of domestic-                                                           Multiple EU,
                                                                                       4.8%
  only sales (90.5%)          USA, 29.7%
                                                                            Other EU,
                                                                              7.6%
Number of
transactions                                     Number of transactions by drug type,
                                                        Australian vendors
The most popularly                         Prescription,
traded drugs in Australia                     1260

are:                                                                            Cannabis, 1517

1. Cannabis (25%)
2. Prescription drugs
   (20%)
3. Ecstasy (16%)            Opioids, 486

4. Methamphetamine
   (12%)
                                                                                     Ecstasy, 958
5. Psychedelics (11%)          Psychedelics,
                                   680
6. Opioids (8%)
                                                                            Amphetamine,
7. Cocaine (7%)                                                                  91
                                             Methamphetamine, 767   Cocaine, 415
8. Amphetamine (1%)
Pricing - Cannabis

         Overall                                               Cannabis the only
                                                               product sold more
 Doesn’t ship to
                                                               cheaply by Australian
   Australia
                                                               vendors
                                                               Also the only product
                                                               where the street
   International

                                                               price is less than both
       Australia
                                                               the international and
                                                               Australian
 Australia street                                              cryptomarket vendor
     price
                                                               price
                    0   5   10                  15   20   25
                                 USD per gram

                                                                           (Cunliffe et al 2017)
Cocaine powder price distributions

                  Overall

Doesn’t ship to Australia

            International

                Australia

    Australia street price

                             0        50    100   150   200         250   300   350   400        450
                                                         USD per gram

                                 MDMA tablet (ecstasy pill) price distributions
                 Overall

         Doesn’t ship to
           Australia

           International

               Australia

   Australia street price

                             0        5     10    15    20          25    30    35    40         45
                                                         USD per pill

                                                                                            (Cunliffe et al 2017)
Heroin price distributions

                  Overall

Doesn’t ship to Australia

            International

                Australia

    Australia street price

                             0        100         200          300                  400          500         600          700
                                                                     USD per gram

                                      Methamphetamine price distributions
                  Overall

Doesn’t ship to Australia

            International

                Australia

    Australia street price

                             0   50         100    150   200             250              300   350    400         450    500
                                                                     USD per gram
                                                                                                                   (Cunliffe et al 2017)
Impact of COVID-19

                     (EMCDDA 2020)
Harm reduction
Cryptomarkets may reduce drug harm by facilitating:
  Access to higher quality, less adulterated illicit drugs
  Access to harm reduction discussion forums
  Reduced threats and instances of violence in drug
  procurement
  Reduction of violence between drug retailers –
  market gentrification

   (Martin 2017; 2014; Bancroft 2017; Bancroft & Reid 2016; van Buskirk
                                              2016; Barratt et al 2016a)
Harm reduction contd.
Some research suggests that cryptomarkets may increase
drug harms:
  Approximately half of surveyed users reported using the
  same range of drugs (GDS 2019)
  Nearly one third reported using a wider range of drugs
  (GDS 2019)
  Barratt et al (2016b) reported that drug users often
  increase rates of usage following first access of a
  cryptomarket
  Usage rates return to normal following this ‘honeymoon’
  period
Conclusions
 Cryptomarkets represents a relatively small but
 steadily growing proportion of the global illicit drugs
 market
 Australia is a major adopter – disproportionately high
 in international terms
 Growing evidence of a range of benefits, including
 harm reduction and reduced systemic violence
 Potential to reduce drug-related harms for both
 users and market participants
?
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References
 Bancroft, A. (2017). Responsible use to responsible harm: illicit drug use and peer harm
 reduction in a darknet cryptomarket. Health, Risk & Society, 19(7-8), 336-350.
 Barratt, M. J., Lenton, S., Maddox, A., & Allen, M. (2016). ‘What if you live on top of a bakery and
 you like cakes?’—Drug use and harm trajectories before, during and after the emergence of Silk
 Road. International Journal of Drug Policy, 35, 50-57.
 Barratt, M. J., Ferris, J. A., & Winstock, A. R. (2016). Safer scoring? Cryptomarkets, social supply
 and drug market violence. International Journal of Drug Policy, 35, 24-31.
 Cunliffe, J., Martin, J., Décary-Hétu, D., & Aldridge, J. (2017). An island apart? Risks and prices in
 the Australian cryptomarket drug trade. International Journal of Drug Policy, 50, 64-73.
 EMCDDA (2020) COVID-19 and drugs; European Centre for Drugs and Drug Addiction
 Martin, J. (2018). Cryptomarkets, systemic violence and the ‘gentrification
 hypothesis’. Addiction, 113(5), 797-798.
 Martin, J. (2014). Drugs on the dark net: How cryptomarkets are transforming the global trade in illicit
 drugs. Springer.
 Soska, K., & Christin, N. (2015). Measuring the longitudinal evolution of the online anonymous
 marketplace ecosystem. In 24th {USENIX} security symposium ({USENIX} security 15)(pp. 33-48).
 UNODC (2020) World Drug Report 2020; United Nations Office on Drugs and Crime, Vienna
 Winstock, A, Barratt, MJ, Maier L, Aldridge, A, Zhuparris, A, Davies, E, Hughes, C, Johnson, M,
 Kowalski, M, Ferris, J (2019) Global Drug Survey (GDS) 2019 Key Findings Report
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