According to CoinDesk, a Taiwanese national has been arrested and charged by U.S. authorities for allegedly operating a darknet drug market, Incognito Market. The individual, identified as Rui-Siang Lin, 23, is accused of facilitating over $100 million in sales of illegal narcotics, including fentanyl, through crypto-denominated transactions.
Prosecutors claim that Lin, under the pseudonym 'Pharoah', had full control over Incognito Market's operations, including its employees, vendors, and customers, from its inception in October 2020 until its closure in March this year. U.S. Attorney Damian Williams stated that law enforcement would continue to pursue criminal actors, regardless of whether they operate on the streets or the dark corners of the internet, emphasizing that the 'dark web' is not a safe haven for lawbreakers.
Lin was apprehended at New York’s John F. Kennedy Airport and is set to appear before a Southern District of New York (SDNY) magistrate judge. He faces multiple charges, including engaging in a continuing criminal enterprise, narcotics conspiracy, money laundering, and conspiracy to sell adulterated and misbranded medication. The first charge, often referred to as the 'kingpin statute', carries a mandatory life sentence. The narcotics conspiracy charge carries a minimum sentence of 10 years and a maximum potential sentence of life in prison, while the other two charges carry a combined maximum of 25 years in prison.
Incognito Market, which Lin allegedly profited millions from, took a 5% cut from every sale. The darknet market had its own 'bank', which provided an additional layer of anonymity to users by allowing them to deposit cryptocurrency into their accounts. The site then automatically transferred the funds from buyers to sellers, deducting the fee.
The complaint also states that Lin created and operated Incognito Market while studying as an undergraduate at the National Taiwan University. In March, Incognito Market ceased operations after allegedly conducting an exit scam that left users unable to withdraw their funds. Site administrators reportedly began extorting vendors, threatening to leak their customers’ data unless they paid a fee ranging from $100 to $20,000, depending on their size.
Lin, who describes himself as a crypto developer and a fan of the privacy coin Monero, reportedly facilitated a four-day workshop on cybercrime and cryptocurrency for 30 police officers at the Saint Lucia Police Academy in early April.