In a massive crypto crackdown, the US Department of Justice (DOJ) detained 23-year-old Taiwanese Rui-Siang Lin.
Lin, as Pharoah or Faro, runs Incognito Market, a dark web drug bazaar. Over $100 million in anonymous crypto drug transactions were facilitated by the site.
Incognito Market, a dark web drug bazaar, debuted in October 2020, according to the indictment. Before closing in March, the site sold over $100 million in drugs. Users worldwide may access the market using Tor. Lin, posing as Pharoah or Faro, managed staff, suppliers, and consumers.
US Attorney Damian Williams for the Southern District of New York said Lin abused the community for personal benefit and that criminals will be prosecuted on street corners or in the “dark corners of the internet.”
Incognito Market used branding, advertising, and customer service like genuine e-commerce sites to enable worldwide drug sales, according to the DOJ. Users searched hundreds of medicine listings using individual usernames and passwords on the marketplace.
Users may deposit cryptocurrencies into digital accounts using the site’s “bank” function. Incognito Market took 5% to transfer bitcoin from buyer to vendor.
Lin will before US Magistrate Judge Willis in Manhattan federal court after being detained at John F. Kennedy Airport on May 18. Lin might be sentenced to life for narcotics conspiracy, 20 years for money laundering, and 20 years for distributing drugs.
This investigation is part of US efforts to target dark web crimes that exploit cryptocurrency for anonymity. Regulation and enforcement of the dark web and crypto transactions are difficult, as the DOJ demonstrated.
Finally, the arrest of Rui-Siang Lin and the recovery of $100 million in crypto assets are major win for law enforcement against dark web drug trafficking. This case illustrates criminal businesses’ inventive ways and authorities’ effective countermeasures.
After Binance admitted to breaking U.S. anti-money laundering rules and was fined $4.3 billion, the DOJ appointed Forensic Risk Alliance (FRA) to supervise it a week ago.
