FBI Arrests a New York Dark Web Market Owner After Tracing Crypto

Arrest of Dark Web Market Owner:

• Rui-Siang Lin, operating under the alias "Pharoah," was arrested by the FBI for running a $100 million dark web narcotics marketplace called Incognito Market.
• Authorities used crypto transaction tracing to uncover Lin's real identity, leading to his arrest at John F. Kennedy Airport on May 18.

Charges and Allegations:

• Lin faces serious charges including engaging in a criminal enterprise, narcotics conspiracy, selling misbranded medication, and money laundering.
• The criminal enterprise charge alone carries a mandatory life sentence if convicted.

Marketplace Operations:

• Incognito Market operated as an onion-based e-commerce platform on the dark web, facilitating drug sales using Bitcoin and Monero as payment methods.
• The marketplace required users to use its proprietary crypto services, skimming 5% of every transaction and providing an escrow service.

FBI Investigation and Tracing Crypto:

• The FBI traced cryptocurrency transfers linked to Incognito Market, discovering funds transferred to a centralized exchange account registered in Lin's name.
• Lin's email, phone number, and accounts were linked to transactions involving Bitcoin and Monero from the market.

Forfeiture and Legal Consequences:

• The Justice Department issued a forfeiture for cryptocurrencies held in Lin's Binance and Kraken accounts.
• If convicted, Lin could face a maximum life sentence for the narcotics conspiracy charge and mandatory life sentence for engaging in a criminal enterprise.