After tracking illicit cryptocurrency transfers, the Federal Bureau of Investigation (FBI) apprehended the owner of a dark web narcotics marketplace.
23-year-old Taiwan resident Rui-Siang Lin, also known as “Pharoah” online, was convicted of running a $100 million dark web narcotics marketplace.
Operating under the alias, Lin managed the ‘Incognito Market’ for roughly four years, accumulating “millions of dollars in personal profits,” as stated by FBI Assistant Director in Charge James Smith in the official announcement.
Lin’s arrest took place on May 18 at New York’s John F. Kennedy Airport.
The illicit platform, among the largest of its kind, operated as an onion-based e-commerce platform accessible through the Tor web browser. Tor enables users to access the dark web and surf the internet anonymously by routing their traffic through a network of servers.
Using cryptocurrencies like Bitcoin and Monero, the platform facilitated the purchase of various drugs such as LSD, MDMA, and prescription amphetamines like Adderall.
Authorities were able to make the arrest primarily because the marketplace encouraged cryptocurrency use by providing discounts and escrow services to its users.
Assisted by other law enforcement agencies and conducting several undercover operations, the FBI successfully traced the transactions made on the platform to Lin. These transactions were linked to an unnamed centralized crypto exchange account that Lin had gone through KYC (Know Your Customer) verification.
Authorities identified at least four Bitcoin transfers from Lin’s wallet, which were routed through a “swapping service” to convert them into XMR, a privacy-oriented cryptocurrency. Following the conversion, the XMR was deposited into a crypto exchange account under Lin’s operation.
The FBI managed to obtain Lin’s driving license, an email account, and a phone number from the exchange, leading to his apprehension. The account initially held $63,000 in 2021 but ballooned to nearly $4.2 million by 2023. Another account tied to the case received deposits of $4.5 million between July and November 2023.
The phone number was associated with a Namecheap account, a platform for domain hosting. Funds sourced from Lin’s wallet were utilized to purchase a domain that advertised the dark web marketplace.
Lin also maintained accounts at crypto exchanges Binance and Kraken, both of which have now been seized by the FBI.
As per the U.S. Department of Justice (DOJ), the marketplace ceased operations in March 2024.
Lin faces severe charges, including one count of engaging in a continuing criminal enterprise, which carries a mandatory life sentence. Additionally, he is charged with narcotics conspiracy, with a minimum of 10 years in prison and a maximum of life. There are also charges of money laundering and a conspiracy to sell adulterated and misbranded medication, carrying a maximum sentence of five years.
Recently, the FBI uncovered a $43 million Ponzi scheme masquerading as a crypto investment opportunity promising substantial returns.
0 Comments