Incognito Market Owner Arrested After FBI Tracks Crypto Transactions

A Taiwanese national was accused of running Incognito Market, a darknet drug marketplace, and arrested after authorities tracked the platform's transactions.

The platform has traded over $100 million in crypto by selling illegal narcotics such as fentanyl.

Incognito Market founder arrested and charged

On May 18, U.S. authorities arrested Rui-Siang Lin, 23, operating under the alias “Pharoah,” at New York’s John F. Kennedy Airport. According to James Smith, FBI Assistant Director in Charge, Lin ran Incognito Market for approximately four years, was in charge of its operations, including suppliers, employees and customers, and was the primary decision maker.

During this time, Lin amassed millions of dollars in personal profits and Incognito Market became one of the largest platforms for selling narcotics online. The platform facilitated the buying and selling of drugs such as prescription amphetamines like Adderall, MDMA, LSD and cocaine using Monero and Bitcoin. In turn, Lin received a 5% cut of each sale as users channeled their funds through the platform.

Lin faces charges including one count of money laundering, one count of engaging in a continuing criminal enterprise, one count of narcotics conspiracy and one count of conspiracy to sell misbranded and adulterated drugs.

According to the FBI, they identified the owner of Incognito Market by tracking the market's cryptography to an exchange account in his name. FBI task force officer Mark Rubens said the exchange provided Lin's driver's license, email address and phone number.

U.S. Attorney Damian Williams said Monday, when Lin appeared in court, that the so-called “dark web” is not a sanctuary for individuals attempting to engage in illegal activity.

Lin faces life imprisonment

Incognito Market ceased operations in March after an exit scam prevented users from accessing their funds. The administrators then allegedly began requiring vendors to pay fees ranging from $100 to $20,000 depending on their size in order to prevent their customers' data from being publicly disclosed.

Despite the allegations, Lin, who identifies himself as a crypto developer and enthusiast of the privacy coin Monero, revealed on the Saint Lucia Police Academy in early April.

If convicted, Lin faces a mandatory life sentence for criminal enterprise. Meanwhile, Ross Ulbricht, the individual behind the darknet drug market Silk Road, faced similar charges and was convicted of the same crime. He was sentenced to life in prison.

Notably, the drug conspiracy charge Lin faces carries a mandatory minimum sentence of 10 years and a maximum potential sentence of life in prison. The other two counts carry a combined maximum sentence of 25 years in prison.