- Authorities arrest the operator of $100 million dark web drug marketplace, Incognito Market.
- FBI tracks Bitcoin transfers to expose Incognito Market owner’s identity.
- Lin faces severe charges including money laundering and drug trafficking conspiracy.
A major takedown in the fight against illegal online drug markets has occurred with the arrest of 23-year-old Rui-Siang Lin, a Taiwanese national also known as “Pharoah.” Lin is accused of operating “Incognito Market,” a dark web marketplace that allegedly facilitated over $100 million in illicit drug sales across nearly four years.
Incognito Market thrived in the shadows of the dark web, accessible only through the anonymizing Tor browser. This platform provided a virtual haven for users to buy and sell a dangerous assortment of narcotics, including cocaine, LSD, and prescription amphetamines.
Transactions were conducted using cryptocurrencies like Bitcoin and Monero, further shrouding the illegal activity in a veil of anonymity. To ensure a steady stream of revenue, Incognito Market reportedly took a 5% cut from every sale and offered an escrow service, essentially acting as a middleman to hold onto funds until purchases were completed.
The downfall of Lin and Incognito Market came courtesy of meticulous investigative work by the FBI. Authorities unraveled the web of anonymity by tracing cryptocurrency transfers originating from Incognito Market. This trail led them to a centralized exchange account allegedly linked directly to Lin. The investigation didn’t stop there.
The FBI meticulously documented instances where Lin allegedly converted Bitcoin earned from the marketplace into Monero, a cryptocurrency known for enhanced privacy features. This attempt to anonymize the funds ultimately proved futile. By leveraging the records maintained by the cryptocurrency exchange, the FBI was able to connect the dots, uncovering Lin’s identity which included his Taiwanese driver’s license information.
Lin now faces a multitude of serious charges, including operating a criminal enterprise, engaging in narcotics trafficking conspiracies, and money laundering. If convicted, he could be sentenced to life in prison. The Department of Justice is also seeking to seize any cryptocurrency assets held in his accounts.
The closure of Incognito Market in March of this year, which coincided with reports of a devastating exit scam that allegedly stole millions from unsuspecting users, further underscores the nefarious nature of these dark web marketplaces.
Recently, the Enforcement Directorate (ED) of India collaborated with the US Federal Bureau of Investigation (FBI) to arrest a man on suspicion of involvement in an international drug trafficking ring. The operation also targeted a Rs 3,000 crore scam involving digital currencies. The ED initiated its investigation in August 2023 based on a tip from the US authorities.
