The Federal Bureau of Investigation (FBI) has arrested the operator of a $100 million dark web narcotics marketplace after tracing illicit cryptocurrency transfers.
Rui-Siang Lin, a 23-year-old resident of Taiwan, was found guilty of running the dark web marketplace. Known online as “Pharoah,” Lin was apprehended on May 18 at John F. Kennedy Airport in New York. He had operated the ‘Incognito Market’ for about four years, making “millions of dollars in personal profits,” according to FBI Assistant Director in Charge James Smith.
Incognito Market, one of the largest platforms of its kind, was an onion-based e-commerce site accessible via the Tor web browser, which allows users to browse the internet anonymously. The platform facilitated the sale of various drugs, including LSD, MDMA, and prescription amphetamines like Adderall, using cryptocurrencies such as Bitcoin and Monero.
The FBI was able to track the transactions on the platform to Lin, thanks in part to the marketplace encouraging users to use cryptocurrencies by offering discounts and escrow services. With the help of other law enforcement agencies and several undercover operations, the FBI traced the crypto transfers to a centralized exchange account registered to Lin.
Authorities tracked at least four Bitcoin transfers from Lin’s wallet to a “swapping service” that converted Bitcoin to Monero (XMR), a privacy-focused cryptocurrency. The XMR was then deposited into a crypto exchange account controlled by Lin. The FBI obtained Lin’s driving license, email account, and phone number from the exchange, leading to his arrest. The account grew from holding $63,000 in 2021 to nearly $4.2 million by 2023. Another exchange account linked to Lin saw $4.5 million deposited between July and November 2023.
Lin’s phone number was also connected to a Namecheap account, a domain hosting platform, and funds from his wallet were used to purchase a domain promoting the dark web marketplace. Lin held accounts at cryptocurrency exchanges Binance and Kraken, which have now been seized by the FBI.
According to the U.S. Department of Justice (DOJ), the marketplace was shut down in March 2024.
Lin faces several charges, including one count of engaging in a continuing criminal enterprise, which carries a mandatory minimum sentence of life in prison. He also faces one count of narcotics conspiracy, with a minimum sentence of 10 years and a maximum potential sentence of life in prison. Additionally, Lin is charged with money laundering and conspiracy to sell adulterated and misbranded medication, carrying a maximum sentence of five years.
Earlier this month, the FBI also uncovered a $43 million Ponzi scheme disguised as a crypto investment opportunity promising high returns.
Summary Review: The dismantling of the $100 million dark web marketplace highlights the FBI’s continued efforts to combat illicit activities facilitated by cryptocurrencies. The arrest of Rui-Siang Lin, the marketplace operator, underscores the consequences faced by those engaged in criminal enterprises leveraging digital currencies. Despite the anonymity provided by blockchain technology, law enforcement agencies have demonstrated their ability to trace and apprehend individuals involved in illegal activities on the dark web. This case serves as a warning to others seeking to exploit cryptocurrencies for illicit purposes, reaffirming the commitment of authorities to maintain the integrity of the financial system and protect the public from harm.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
