Australian Drug Users and the Dark Web - ASPAD Insight 2020 Series Associate Professor James Martin - AWS
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ASPAD Insight 2020 Series Associate Professor James Martin Australian Drug Users and the Dark Web CRICOS 00111D TOID 3069
ASPAD Insight 2020 Series Associate Professor James Martin Australian Drug Users and the Dark Web CRICOS 00111D TOID 3069
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
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). 4
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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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