On February 4, according to CoinDesk, the U.S. Attorney’s Office for the Southern District of New York announced that Rui-Siang Lin, the alleged operator of the darknet drug marketplace Incognito Market, has been sentenced to 30 years in federal prison. Law enforcement described the case as one of the largest darknet drug marketplace prosecutions since Silk Road.
Prosecutors stated that between October 2020 and March 2024, the platform facilitated more than $105 million in illegal drug transactions, completing over 640,000 trades and serving hundreds of thousands of buyers worldwide.
Crypto Payments and Anonymity Tools Failed to Prevent Identification
Investigators noted that the operator attempted to conceal their identity through cryptocurrency payments and various anonymization tools. However, authorities ultimately linked the suspect to the platform through domain registration records, digital forensic evidence, and on-chain behavioral analysis.
Rui-Siang Lin, known online as “Pharaoh,” pleaded guilty in December 2024 to multiple charges, including:
- Drug trafficking conspiracy
- Money laundering
- Conspiracy to distribute adulterated and misbranded pharmaceuticals
- The case highlights the continued advancement of cross-border enforcement cooperation and digital forensic capabilities.
Strengthening Enforcement Trends and Advancing Crypto Crime Tracking
As cryptocurrencies become more prevalent in illicit markets, regulators and law enforcement agencies are increasingly enhancing on-chain forensic investigation and fund-tracking capabilities. Even when criminals employ mixing services or anonymous communication tools, long-term transaction pattern analysis can still reveal critical links.
From a compliance perspective, some exchanges and institutions leverage on-chain risk intelligence tools such as Trustformer KYT to continuously monitor high-risk addresses, darknet-related fund flows, and suspicious transaction pathways, helping reduce potential compliance and reputational risks.
Conclusion
The Incognito Market sentencing reinforces that crypto assets are not fully anonymous, and long-term digital footprints can become decisive evidence. As regulatory frameworks and on-chain analytics technologies continue to mature, tracking darknet-related crime is becoming increasingly effective, while the importance of compliance and risk monitoring continues to grow.