FBI tracks cryptocurrency movements and arrests dark web drug market boss in New York

The FBI recently arrested a 23-year-old man in New York, charging him with operating a $100 million dark web drug trading market. The man is called Lin Ruixiang, who goes by the online name "Pharoah". He is accused of operating a dark web drug trading platform called Incognito Market.

Incognito Market is an onion-based e-commerce platform where users can buy and sell drugs using Bitcoin and Monero. The market allegedly requires users to use its crypto services and squeezes 5% of the profit from each transaction. The market was closed in March this year. Lin Ruixiang was charged with participating in a criminal gang, conspiracy to traffic in drugs, conspiracy to sell improper drugs, and money laundering. If convicted, he faces life in prison.

The FBI said they discovered Lin Ruixiang's true identity by tracking cryptocurrency transfers. Lin Ruixiang's cryptocurrency wallet allegedly received funds from Incognito Market and transferred them to an unnamed cryptocurrency exchange account.

According to the testimony, Lin Ruixiang's cryptocurrency exchange account deposits increased from about $63,000 in 2021 to nearly $4.2 million in 2023, and a second unnamed exchange account deposited $4.5 million between July and November last year.