‘Drug king’ earns $105 million through crypto, but now faces harsh punishment

The founder of Incognito Market, an illegal online marketplace on the dark web, has been sentenced to 30 years in prison in the United States. It concerns Rui-Siang Lin, a 24-year-old man who ran the platform under the name Pharaoh. According to the judge, he played a major role in international drug trafficking via cryptocurrency.

Large-scale drug trafficking via crypto

Incognito Market was used to sell drugs to users around the world between 2020 and 2024. Payments were made entirely via crypto, which provided a sense of anonymity for buyers and sellers.

In total, more than 640,000 transactions were carried out, with a combined value of more than 105 million dollars. The platform sold cocaine, heroin, MDMA, methamphetamine and pills that were presented as medicines.

Own crypto payment system for anonymous payments

To ensure smooth payments, Incognito Market used an internal payment system. Users could deposit crypto here and make payments within the platform.

After each sale, the marketplace took a commission. In this way, Lin made millions from the illegal trade. You can compare it with Bol.com: just like there, the platform arranged the payments and deducted a commission, but with Incognito Market it involved drugs and payments were made with crypto instead of normal money.

Flaws in online security led to the founder

Authorities tracked down Lin through a combination of blockchain analysis, undercover purchasing and human error. Researchers tracked crypto transactions on the blockchain and linked them to the platform.

In addition, agents made undercover purchases to understand the system from the inside. Ultimately, Lin himself made a crucial mistake by using his real name, phone number and address when registering the domain, allowing the marketplace to be directly linked to him.

Heavy punishment and clear signall

The judge called Lin a drug kingpin and spoke of one of the most serious cases in her career. Lin had previously pleaded guilty to, among other things, drug trafficking and money laundering.

In addition to the prison sentence, he must hand over more than 105 million dollars. After his release, he will remain under supervision for another five years. The case shows that governments are taking increasingly tougher action against the misuse of crypto for illegal activities.