The alleged owner of the darknet narcotics marketplace Incognito Market, Rui-Siang Lin, has been arrested and charged in the U.S. for running a multimillion-dollar illegal narcotics operation.
What Happened: Lin, a 23-year-old Taiwanese national, was arrested at the John F. Kennedy Airport in New York on Saturday, according to the Department of Justice.
He is accused of operating Incognito Market under the alias “Pharoah” from October 2020 to its closure in March, overseeing all aspects of the operation.
Lin faces charges of engaging in a continuing criminal enterprise, narcotics conspiracy, money laundering, and conspiracy to sell adulterated and misbranded medication.
The first charge, also known as the “kingpin statute,” carries a mandatory life sentence. The narcotics conspiracy charge has a mandatory minimum sentence of 10 years and a maximum potential sentence of life in prison. The other two charges carry a combined maximum of 25 years in prison, according to CoinDesk.
Lin allegedly made millions from the market, which took a 5% cut of every sale. The market had its own “bank,” which provided an additional layer of anonymity by allowing users to deposit cryptocurrency into their accounts, which the site then automatically transferred from buyers to sellers, minus the fee.
Why It Matters: The arrest of Lin is the latest in a series of crackdowns on illegal activities in the cryptocurrency space. Earlier in May, a descendant of the Cartier jewelry lineage was charged with money laundering through cryptocurrency. This case underscores the ongoing efforts to track and dismantle sophisticated financial networks that launder narcotics profits.
These events are in line with the concerns raised by Sen. Elizabeth Warren (D-Mass.), who has been vocal about the potential misuse of cryptocurrencies by drug traffickers and other illicit actors. She has proposed legislation to close loopholes in anti-money laundering rules and cut off drug suppliers and cartels from using crypto to fuel their illegal business.
Image Via Shutterstock
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