In what law enforcement agencies are calling the largest Tor-based vendor takedown since Operation Disruptor, an international task force has arrested a figure known online as “CrimsonLotus”, a darknet supplier responsible for distributing narcotics, malware kits, and counterfeit documents across more than 50 countries.
The arrest took place during a coordinated multi-agency sting codenamed Operation Red Veil, involving the Interpol Cyber Division, Dutch National Police, and the U.S. Department of Homeland Security. According to a leaked memo obtained by TorNews.org, CrimsonLotus was traced through a combination of packet-timing attacks, custom exploit logs, and metadata left in private vendor messages on a Tor-based marketplace known as “Obsidian Bay.”
CrimsonLotus, believed to be a 41-year-old Slovenian national named Luka Kovač, allegedly ran multiple storefronts across different markets under aliases like “LotusDrop,” “MidnightSeeds,” and “DocHive.” Authorities claim Kovač was responsible for distributing over 11 metric tons of synthetic cannabinoids, 4 million benzodiazepine pills, and a large volume of forged EU passports, all transacted in Monero and Bitcoin.
A surprising twist came during the raid of Kovač’s safehouse outside Ljubljana, where investigators discovered an off-grid data bunker built inside an abandoned winery. The facility contained air-gapped laptops, hardware wallets, and a custom-built Tor relay node disguised as a weather monitoring station. Forensic teams also uncovered prototype scripts intended to scrape vendor review data from rival markets and inject false negative ratings.
Obsidian Bay, the Tor-based market used by CrimsonLotus, has gone offline in what appears to be a voluntary exit following the raid. The market’s admin left behind a farewell message: “The garden has withered. We burn the roots before the rot spreads. You know where to find us, if you know what matters.”
As of this writing, no additional suspects have been named, but Europol sources indicate that seven satellite vendors and three crypto mixers used by CrimsonLotus are under active investigation.
Cybercrime experts suggest this takedown marks a major shift in Tor threat mapping. “What we’re seeing is the slow collapse of trust between major vendors and infrastructure providers,” said Dr. Ella Vargas, darknet researcher at the Cyber Crimes Institute. “It’s not just about markets falling—it’s about the entire logistics model being under siege.”
