23-Year-Old Man Arrested for Operating $100M Dark Web Narcotics Market
Summary:
23-year-old Rui-Siang Lin has been arrested on charges related to running a $100 million dark web narcotics marketplace known as the Incognito Market. The platform allowed users to trade in various illegal drugs using Bitcoin and Monero currencies. The FBI traced cryptocurrency transfers that led to Lin's identification and subsequent arrest. Lin faces multiple charges – including running a criminal enterprise, narcotics conspiracy, and money laundering – which could lead to a life sentence if convicted. The Justice Department has also ordered the seizure of all cryptocurrencies held in Lin's Binance and Kraken accounts.
New York authorities have apprehended a 23-year-old man, Rui-Siang Lin, accusing him of being the mastermind behind a $100 million illegal narcotics trade on the dark web. Known as "Pharoah" in the digital underworld, Lin was apprehended at John F. Kennedy Airport on May 18 and made his initial court appearance on May 20. The U.S Attorney's Office of Manhattan announced in a statement that Lin is believed to have been running the "Incognito Market," one of the largest platforms dealing in narcotics, racking up millions in personal profits.
Incognito Market used an onion-based platform, accessed via the Tor web browser, allowing users access to the darknet. The site provided a marketplace for various drugs, including but not limited to cocaine, LSD, MDMA and prescription amphetamines like Adderall, with Bitcoin (BTC) and Monero (XMR) serving as the accepted payment method.
The Department of Justice claims that Incognito Market insisted on customers and suppliers using its own cryptocurrency services, enabling it to extract commission fees of 5% on every transaction and to mediate deals as an escrow service. Activity ceased in March of this year, coinciding with allegedly fraudulent actions that absconded with customers' Bitcoin and Monero.
Lin faces charges on several counts, including establishing a criminal enterprise, narcotics conspiracy, distribution of drugs not properly labelled, and money laundering. If found guilty, Lin might be imprisoned for life.
The Justice Department has mandated the seizure of all cryptocurrency in Lin's Kraken and Binance accounts. The FBI played a key role in the investigation, tracing the electronic trail of cryptocurrency transfers from the Incognito Market to an undisclosed exchange account registered under Lin's name.
Upon tracing the transactions, it was discovered that a digital wallet apparently owned by Lin received funds from the Incognito Market before being routed to an account registered in Lin's name. The FBI alleged that upward of four separate transfers traced Lin's cryptocurrency wallets receiving funds from the Incognito Market, which was then diverted to a service to be swapped for XMR and later deposited into an exchange account, allegedly controlled by Lin.
Additional information like Lin's Taiwanese driver's licence, email address, and phone number were provided by the exchange. These details reportedly linked to a Namecheap account funded by the same cryptowallet and exchange account, which was used to purchase a domain used to promote the Incognito Market.
Tracked payments to Lin's cryptocurrency exchange account grew in parallel with the Incognito Market; with deposits swelling from around $63,000 in 2021 to almost $4.2 million across 2023. Another undisclosed exchange account reflected deposits totalling $4.5 million, deposited between July and November of the preceding year.
Published At
5/21/2024 4:34:41 AM
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