US DOJ Confiscates $100M in Cryptocurrency (BTC, ETH) from Extensive Dark Web Drug Ring

• In a recent crackdown on illicit transactions involving crypto assets, the US Department of Justice (DOJ) arrested Rui-Siang Lin, a 23-year-old individual from Taiwan.
• Lin is accused of owning and operating a dark web drug marketplace known as the “Incognito Market.”
• “This case underscores our resolve to aggressively pursue those who use the digital space for illegal purposes,” said US Attorney Damian Williams.

Explore the recent DOJ crackdown on a $100 million dark web drug marketplace and its implications for crypto regulations.

$100 Million Crypto Operation Exposed

According to the complaint and indictment, Incognito Market emerged in October 2020 as an online narcotics bazaar operating on the dark web. Until its closure in March, the marketplace facilitated the sale of over $100 million worth of crypto in narcotics, including substantial quantities of cocaine and methamphetamines.

Operational Tactics and Anonymity

Accessible to global users with internet connectivity, Incognito Market could be reached via the Tor web browser on the darknet. Lin, operating under the online pseudonyms “Pharoah” or “Faro,” acted as the market leader and oversaw all its operations, including employees, vendors, and customers.

Dark Web Drug Lord Arrested

According to the DOJ, Incognito Market was designed to facilitate seamless narcotics transactions worldwide by incorporating features commonly seen on legitimate e-commerce sites, such as branding, advertising, and customer service.

The Role of Cryptocurrency in Illegal Trade

It is further alleged that the platform sold illegal narcotics and misbranded prescription drugs, including heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. To become a vendor on Incognito Market, individuals had to register with the site and pay an admission fee. In exchange for listing and selling narcotics, vendors paid 5% of the purchase price to Incognito Market. Lin accumulated millions of dollars in profits from the operation.

Conclusion

The arrest of Rui-Siang Lin marks a significant achievement in the fight against illegal online marketplaces. It highlights the ongoing challenges and complexities of regulating and monitoring cryptocurrency transactions used in criminal activities.