Binance Helps US and Taiwan Dismantle $100M Darknet Drug Market

Binance’s FIU was crucial in a global operation led by U.S. and Taiwanese authorities, dismantling the $100M Incognito Market darknet drug platform.

Binance’s Intelligence Unit Key to International Darknet Drug Bust

Binance’s Financial Intelligence Unit (FIU) played a crucial role in “Operation RapTor,” a global law enforcement initiative led by U.S. and Taiwanese authorities, which dismantled Incognito Market, a major darknet platform for illegal drug sales. This development was detailed in a blog post by Binance on June 9. The marketplace had facilitated over $100 million in illicit transactions.

Incognito Market allowed users to acquire more than 1,000 types of illegal drugs, including heroin and methamphetamine, through cryptocurrency. The platform’s use of advanced privacy tools and its own crypto-based “banking” system aimed to obscure transactions. However, Binance stressed that its FIU’s efforts proved instrumental, stating:

Binance’s FIU provided critical intelligence, traced illicit crypto flows, and froze over $3.5 million in assets linked to the platform.

This intelligence led to the identification and arrest of Rui-Siang Lin, also known as “Pharaoh,” a Taiwanese national who operated the market and profited significantly. Lin has since pleaded guilty in a U.S. federal court to narcotics conspiracy, money laundering, and distributing misbranded drugs.

Nils Andersen-Röed, Global Head of Binance’s FIU, emphasized that blockchain transactions leave a permanent digital trail, making criminal activity traceable. He highlighted the increasing importance of cross-border collaboration and public-private partnerships in addressing complex crypto-related crimes. This operation follows Binance’s prior assistance in the takedown of Kidflix, a child exploitation platform, indicating a pattern of cooperation with law enforcement agencies.