BitTorrent (btt) 
The Federal Bureau of Investigation (FBI) has apprehended the owner of a dark web narcotics marketplace by tracking illicit cryptocurrency transfers.
Rui-Siang Lin, a 23-year-old resident of Taiwan, was found guilty of operating a $100 million dark web narcotics marketplace. Known online as “Pharoah,” Lin was arrested on May 18 at John F. Kennedy Airport in New York. He ran the ‘Incognito Market’ for about four years, earning millions in personal profits, according to FBI Assistant Director James Smith.
The platform, one of the largest of its kind, was an onion-based e-commerce site accessible via the Tor web browser. This browser allows users to browse the internet anonymously by routing their traffic through a network of servers. The site was powered by cryptocurrencies like Bitcoin and Monero, enabling users to purchase various drugs such as LSD, MDMA, and prescription amphetamines like Adderall.
The arrest was facilitated mainly because the marketplace encouraged its users to use cryptocurrencies by offering discounts and escrow services. With assistance from other law enforcement agencies and several undercover operations, the FBI managed to trace transactions made on the platform to Lin. The transactions were linked to an unnamed centralized crypto exchange account that was KYC’d by Lin.
At least four of the Bitcoin transfers tracked by the authorities from Lin’s wallet were directed towards a “swapping service” to convert it to XMR, a privacy-focused cryptocurrency. The XMR was then deposited into a crypto exchange account managed by Lin.
The FBI secured Lin’s driving license, an email account, and a phone number from the exchange, resulting in his arrest. The account grew from holding $63,000 in 2021 to nearly $4.2 million by 2023. Another unnamed exchange account linked to the case saw $4.5 million deposited between July and November 2023.
The phone number was linked to a Namecheap account, a domain hosting platform. Funds from Lin’s wallet were used to purchase a domain that promoted the dark web marketplace. Lin also held accounts at crypto exchanges Binance and Kraken, which have now been seized by the FBI.
According to the U.S. Department of Justice (DOJ), the marketplace was shut down in March 2024. Lin has been charged with one count of engaging in a continuing criminal enterprise, which carries a mandatory minimum sentence of life in prison. He also faces one count of narcotics conspiracy, with a minimum sentence of 10 years in prison and a maximum potential sentence of life in prison. Additionally, Lin is charged with money laundering and faces a conspiracy charge to sell adulterated and misbranded medication, with a maximum sentence of five years.
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