Distric0x is a project working on this. Not necessarily for criminal markets, but for decentralized markets.
This seems exactly the kind of applications Ethereum was meant for; however, is there a dispute resolution organ?
I'm not sure of the details, but this blog post may answer your question about dispute resolution (& malicious actors)
https://blog.district0x.io/introducing-the-district-registry...
Coding on Ethereum is hard, and this project is ambitious.