The Federal Bureau of Investigation (FBI) has arrested Rui-Siang Lin, a 23-year-old Taiwan resident, for operating a $100 million dark web narcotics marketplace. Known online as “Pharoah,” Lin was apprehended on May 18 at John F. Kennedy Airport in New York. Lin had been running the ‘Incognito Market’ for approximately four years, earning millions in personal profits.
The Operation
The illicit platform, one of the largest of its kind, was accessible via the Tor web browser, which allows users to browse the internet anonymously by routing their traffic through a network of servers. Powered by cryptocurrencies like Bitcoin and Monero, the marketplace facilitated the sale of various drugs, including LSD, MDMA, and prescription amphetamines like Adderall.
The FBI Assistant Director in Charge, James Smith, stated that the arrest was largely due to the marketplace’s encouragement of cryptocurrency use by offering discounts and escrow services. Through undercover operations and collaboration with other law enforcement agencies, the FBI traced transactions on the platform to Lin. These transactions were made to a centralized crypto exchange account verified by Lin.
Tracing the Transactions
Authorities tracked at least four Bitcoin transfers from Lin’s wallet to a “swapping service” for conversion to Monero (XMR), a privacy-focused cryptocurrency. The XMR was then deposited into a crypto exchange account run by Lin. The FBI secured Lin’s driving license, email account, and phone number from the exchange, leading to his arrest. Lin’s account grew from $63,000 in 2021 to nearly $4.2 million by 2023. Another linked exchange account saw $4.5 million deposited between July and November 2023.
Digital Footprints
Lin’s phone number was connected to a Namecheap account, a domain hosting platform, where funds from his wallet were used to purchase a domain promoting the dark web marketplace. Lin also held accounts at crypto exchanges Binance and Kraken, which have now been seized by the FBI.
Legal Proceedings
The U.S. Department of Justice (DOJ) reported that the marketplace was shut down in March 2024. Lin faces several charges, including 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 and a maximum potential sentence of life in prison. Additionally, Lin is charged with money laundering and a conspiracy to sell adulterated and misbranded medication, with a maximum sentence of five years.
Earlier this month, the FBI also uncovered a $43 million Ponzi scheme disguised as a crypto investment offering huge returns, highlighting the ongoing challenges and successes in combating cybercrime.
The dismantling of the $100 million dark web marketplace operated by Lin underscores the FBI’s capabilities in tracking and apprehending cybercriminals using advanced digital tools and international cooperation. This case serves as a significant reminder of the ongoing efforts to combat illicit activities in the digital age.
