30 years in prison for the manager of Incognito Market

A 24-year-old Taiwanese man has been sentenced to 30 years in prison for running Incognito Market, one of the world's largest online drug marketplaces, which sold more than $105 million worth of illegal drugs. Rui-Siang Lin, also known by the aliases Pharoah and Faro, was arrested in May 2024 and pleaded guilty in December to money laundering, conspiracy to distribute drugs and selling counterfeit drugs.

U.S. District Judge Colleen McMahoncalled the case “the most serious drug crime she has dealt with in 27.5 years” and referred to Incognito Market as “the operation that made Lin a drug lord.”

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The size of the market: Over 1 ton of drugs

According to the indictment, Incognito Market facilitated the sale of more than a ton of drugs. These included 295 kilograms of methamphetamine, 364 kilograms of cocaine, 112 kilograms of amphetamines and 92 kilograms of ecstasy (MDMA), with some products laced with fentanyl.

The platform hosted more than 1,800 sellers, served over 400,000 customer accounts , and processed more than 640,000 transactions, with Lin controlling all operations and retaining ultimate decision-making authority. Transactions were made in cryptocurrencies through the “Incognito Bank” platform, which generated over $83.6 million in revenue, with Lin earning over $4.1 million in a 5% commission on transactions.

Research activities and arrest

In July 2022 and August 2023, US authorities seized three servers used to operate the market. One handled transaction data, the second protected against DDoS attacks, and the third processed all cryptocurrency transactions.

Incognito Market operated under Lin's management from October 2020 to March 2024, when he suddenly shut it down and threatened to make public the transaction history of any suppliers or customers who did not pay an additional fee.

Impacts and social cost

U.S. Attorney Jay Claytonsaid Lin was one of the most prolific drug traffickers in the world, with having illegal activities devastating consequences. At least one death has been linked to the sale of the drugs, while his activity exacerbated the opioid crisis and affected more than 470,000 drug users and their families.

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In addition to the 30-year prison sentence, Lin was sentenced to five years of supervised release and the judge ordered the forfeiture of $105,045,109.67.

The international framework of online drug markets

Lin’s case is not unique to the dark web. Last month, a co-founder of Empire Market pleaded guilty to federal drug conspiracy charges, facilitating $430 million in illicit transactions. Additionally, a Slovakian national admitted to helping run a marketplace that sold drugs, cybercrime tools, fake identities, and stolen personal information for more than two years.

These incidents highlight the ongoing challenge for authorities: technology and cryptocurrencies facilitate illicit markets on a global scale, making international cooperation and advanced digital investigations essential to combat crime in the digital world.

Justice meets the dark web

Rui-Siang Lin's conviction sends a strong message to those who attempt to exploit the dark web for illicit activities. While online drug markets continue to grow, coordinated international action and enforcement of justice prove that even the most sophisticated digital barons are not invincible.

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The case also shows how cryptocurrencies and digital platforms are changing the criminal landscape, while also highlighting the need for increased education, technology and international cooperation in combating organized crime in cyberspace.

Source: www.bleepingcomputer.com