The $100 Million Dark Web Drug Empire: Inside the World of Incognito Market

Rui-Siang Lin, a 23-year-old Taiwanese national, was arrested at New York’s John F. Kennedy Airport on May 18 and charged with owning, running, and profiting from Incognito Market, a dark web narcotics marketplace that allegedly facilitated $100 million in illicit drug transactions.

Lin, known online as “Pharoah,” appeared in federal court on Monday, May 20, to face charges of engaging in a criminal enterprise, narcotics conspiracy, conspiracy to sell misbranded medication, and money laundering.

TLDR

• Rui-Siang Lin, a 23-year-old Taiwanese national, was arrested in New York and charged with owning, running, and profiting from Incognito Market, a dark web narcotics marketplace.
• Incognito Market allegedly facilitated $100 million in illicit drug transactions, including sales of cocaine, methamphetamines, and misbranded prescription drugs.
• The FBI traced cryptocurrency transfers from Incognito Market to a crypto exchange account allegedly in Lin’s name, leading to his arrest.
• Lin faces charges of engaging in a criminal enterprise, narcotics conspiracy, conspiracy to sell misbranded medication, and money laundering, with a potential life sentence if convicted.
• Lin’s arrest is part of ongoing international efforts to combat illicit online marketplaces, including recent takedowns of Nemesis Market and Kingdom Market.

Incognito Market, an onion-based e-commerce platform accessed using the Tor web browser, allowed users to buy and sell drugs such as cocaine, LSD, MDMA, and prescription amphetamines using Bitcoin and Monero as payment methods.

The marketplace demanded buyers and vendors use its own crypto services, enabling it to skim 5% of every purchase and offer an escrow service.

The FBI traced cryptocurrency transfers from Incognito Market to a crypto exchange account allegedly in Lin’s name, leading to his arrest.

According to an FBI deposition, Lin’s crypto wallet received funds from Incognito Market’s wallet, which were then sent to an exchange account in his name.

The FBI also tied an email address and phone number associated with the exchange account to a Namecheap account used to purchase a domain promoting Incognito Market.

Lin’s arrest is part of ongoing international efforts to combat illicit online marketplaces. German police recently took down the Nemesis market in March and seized Kingdom Market in December 2023, both of which sold a variety of illegal goods, including drugs. U.S. authorities have also targeted markets for cybercrime tools and stolen data, such as BreachForums and xDedic.

If convicted, Lin faces a mandatory life sentence on the criminal enterprise charge, with the narcotics conspiracy charge carrying a potential life sentence as well.

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