Feds Arrest Alleged Dark Web Drug Kingpin Linked to $100 Million Crypto Valuation
In a recent crackdown on illicit transactions involving crypto assets, the US Department of Justice (DOJ) apprehended Rui-Siang Lin, a 23-year-old individual from Taiwan. Lin, also known as Pharoah and Faro, stands accused of owning and running a dark web drug marketplace called the “Incognito Market.” The platform supposedly facilitated anonymous crypto-based transactions of illegal narcotics globally, amounting to over $100 million.
Exposure of $100 Million Illegal Crypto Scheme
According to the complaint and indictment, Incognito Market emerged in October 2020 as an online narcotics market functioning on the dark web. The marketplace operated until its shutdown in March, enabling sales of over $100 million worth of crypto for narcotics, including substantial quantities of cocaine and methamphetamines.
- The platform surfaced in October 2020 as an online narcotics bazaar on the dark web.
- It functioned until its closure in March and managed sales exceeding $100 million in narcotics.
Accessible to worldwide users with internet access, Incognito Market could be accessed through the Tor web browser on the darknet. Lin, operating under the aliases “Pharoah” or “Faro,” acted as the market leader and supervised all operations, including employees, vendors, and customers.
Apprehension of Dark Web Drug Tycoon
The DOJ states that Incognito Market was crafted to facilitate seamless international narcotics transactions by integrating features reminiscent of legitimate e-commerce sites, including branding, advertising, and customer service. Users reportedly accessed the marketplace by logging in with unique credentials, allowing them to browse thousands of drug listings.
- The marketplace was designed to facilitate global narcotics transactions.
- Users integrated unique login details to peruse numerous drug listings.
The platform allegedly traded illegal narcotics and misbranded prescription drugs like heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. To become a vendor on Incognito Market, individuals had to register and pay an admission fee, allocating 5% of the purchase price to the marketplace for listing and selling narcotics. Lin amassed millions in profits from the operation.
Crypto Transactions and Arrest
Incognito Market featured a “bank” permitting users to deposit crypto assets into digital accounts. Post-transaction, cryptocurrency was transferred from the buyer’s to the seller’s account, with the marketplace claiming a 5% fee. Lin was arrested at John F. Kennedy Airport on May 18 and is due to appear in Manhattan federal court.
- Users could deposit crypto assets into digital bank accounts on the platform.
- Lawsuit filed against Lin, with a court appearance scheduled in Manhattan.
If convicted, Lin could face severe penalties, including life imprisonment for narcotics conspiracy, a 20-year sentence for money laundering, and another 20 years for conspiracy to distribute narcotics.
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