Kenneth Foster is one of two men who NSW police have charged with running a sophisticated online drugstore selling banned and prescribed steroids, Xanax and estrogen inhibitors.

The 60-year-old, and co-accused 28-year-old Nikhil Bhargava, allegedly took payments in a range of cryptocurrencies while running a legal-looking website, registered to an Icelandic domain.

Foster, who resigned from the force more than a decade ago, applied for bail when he faced Parramatta Bail Court via video link on Saturday.

He was arrested on Friday, along with Bhargava, after detectives raided two homes and intercepted 22 parcels allegedly containing prohibited drugs.

Police allege they found more than 2500 vials of steroids, a tablet press fun, phones, sim cards and other items from two homes in Bella Vista and North Rocks.

The court heard Foster had made a "full admission" to alleged supply and identity information charges yet he applied for bail because he hoped to be granted an intensive corrections order instead of a custodial sentence.

"His alleged role is limited to that of the packager and delivery man," his legal aid defence lawyer said, adding it was the 60-year-old's first time in custody.

Foster has been dealing with PTSD for about 10 years and has been receiving weekly treatment for a bad back, the lawyer said.

But police prosector Sergeant Darcy said Foster was a flight risk, particularly because it was difficult to control his cryptocurrency finances.

The organised nature of the crime, which carries a maximum 20-year sentence, and the accused's "full admission to the offences" meant no bail conditions would be acceptable, he told the court.

Magistrate Robert Rabbidge agreed.

The magistrate added it was a "sad situation" to see a person of mature years with significant health issues, and a long-term battle against PTSD, before the court.

The matter was adjourned to Blacktown Local Court on November 18.

Co-accused Bhargava, an Indian national, did not apply for bail and his matter was adjourned to Parramatta Local Court on Monday.

He faced four charges of drug supply, one charge of drug supply on an ongoing basis and two charges related to dealing with identity information to commit a serious offence.

Australian Associated Press