Incognito Market Owner Arrested After FBI Tracked Crypto Transactions

A Taiwanese national was accused of running Incognito Market, a drug market on the dark web, and was arrested after authorities traced the platform's transactions.

The platform has handled more than $100 million worth of cryptocurrencies through the sale of illegal drugs like fentanyl.

The hidden market founder was arrested and charged

On May 18, US authorities Arrested Roy Siang Lin, 23, works under the alias “Pharaoh” at New York's John F. Kennedy Airport. According to FBI Assistant Director in Charge James Smith, Lane ran the stealth market for approximately four years, was responsible for its operations, including vendors, employees, and customers, and was the primary decision maker.

During this time, Lin amassed millions of dollars in personal profits, and the incognito market grew into one of the largest online drug selling platforms. The platform has facilitated the buying and selling of drugs such as prescription amphetamines such as Adderall, MDMA, LSD, and cocaine using Monero and Bitcoin. In return, Lin received 5% of each sale as users funneled money through the platform.

Lin faces charges that include one count of money laundering, one count of engaging in a continuing criminal enterprise, one count of drug conspiracy, and one count of conspiracy to sell misbranded and adulterated medications.

According to the FBI, they identified the market's undercover owner by tracking cryptocurrencies from the market to an exchange account in his name. The exchange provided Lane's driver's license, email and phone number, said Mark Robbins, an FBI task force officer.

The so-called “dark web” is not a haven for individuals trying to engage in illegal activities, US Attorney Damien Williams said Monday, when Lin appeared in court.

Lin faces life imprisonment

The Incognito marketplace went out of business in March after a checkout scam left users unable to access their funds. Officials then reportedly began requiring sellers to pay fees ranging from $100 to $20,000 based on their size to prevent their customer data from being publicly leaked.

Despite these claims, Lin, who is known as a cryptocurrency developer and enthusiast of the privacy coin Monero, a statement On X conducted a four-day workshop on cybercrime and cryptocurrencies for 30 police officers at the Saint Lucia Police Academy in early April.

If convicted, Lin will receive a mandatory life sentence for the criminal enterprise. Meanwhile, Ross Ulbricht, the person behind the Silk Road dark web drug market, faced similar charges and was convicted of the same crime. He received a life sentence.

Notably, the drug conspiracy charge that Lane faces carries a mandatory minimum sentence of 10 years and a possible maximum penalty of life imprisonment. The other two charges carry a maximum penalty of 25 years in prison.