The market also used multiple wallets to manage its funds—hot wallets for active transactions and cold storage for the bulk of its assets. Lin recognized this vulnerability and transitioned the market to Monero, a cryptocurrency designed specifically for privacy. By doing this, Lin was able to obscure the money trail, making it incredibly difficult for law enforcement to trace payments. The 'bank' also facilitated the exchange of different cryptocurrencies, giving users more flexibility in how they conducted their transactions. This wasn’t just a simple wallet for storing Bitcoin or Monero—it was a full-fledged banking system that allowed users to deposit funds, conduct transactions, and even earn interest on their deposits. One of Lin’s most innovative contributions to the darknet was the creation of a cryptocurrency 'bank' within Incognito.
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In return, Incognito provided an infrastructure for secure (albeit illegal) transactions and acted as an escrow intermediary between buyer and seller. Incognito charged vendors a 5% commission on every sale, a business model that generated millions of dollars in revenue for the platform. Users could register accounts and browse thousands of listings for illegal narcotics ranging from heroin, cocaine, and methamphetamine to LSD, MDMA, ketamine, and prescription pills. Behind the playful incognito-themed logo and slick interface, however, was a bustling bazaar of contraband. As a new market, it has not yet established itself in the community, although it remains a reliable alternative when larger markets decline.
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Incognito Market, which was shut down in March, was an online dark web marketplace that allowed users to buy and sell illegal drugs anonymously, according to the Justice Department. Lin was the alleged mastermind behind Incognito Market, a darknet marketplace that facilitated the sale of illicit drugs and other illegal goods. The defendants allegedly sold drugs on darknet marketplaces in exchange for cryptocurrency under the monikers “NuveoDelux,” “Mrjohnson,” and “AllStateRx.” Incognito Market emerged on the dark web in October 2020, at a time when users and vendors were seeking new havens after a series of law enforcement takedowns and exit scams on other marketplaces. Incognito Market’s online storefront showcased illegal drugs like heroin, cocaine, and other narcotics, complete with product listings, prices, and vendor ratings.
Many darknet users, particularly those who are less technically proficient, fail to follow proper encryption protocols. Another significant obstacle for law enforcement was Incognito’s use of PGP encryption for all communications. Law enforcement agencies collaborated with blockchain forensics firms like Chainalysis, which specialize in tracking and analyzing cryptocurrency transactions.
The Rise And Fall Of Incognito Market
Hundreds of pounds of cocaine, methamphetamines, and other drugs were sold on Incognito Market since its launch in October 2020, it said. The stings have included markets for cybercrime tools and stolen data, including BreachForums last week and xDedic in January. Lin, who allegedly used the aliases Pharoah and faro, faces charges that include running a criminal enterprise and money laundering.
The authorities said that for almost four years, Rui-Siang Lin operated and owned the Incognito Market, an online marketplace on the dark web that users worldwide visited to buy and sell illegal narcotics. The case has brought the complexities of dark web marketplaces into the public eye, shedding light on the operations that underpin these illegal markets and the steps law enforcement is willing to take to dismantle them. According to reports, Lin's involvement went beyond merely running the marketplace—he was allegedly deeply involved in money laundering activities, enabling vendors and buyers to conduct transactions under a veil of anonymity. And if that weren't enough, the platform's finals days were allegedly spent extorting its users between $100 and $20,000, under threat of revealing they had participated in the purchase and sale of illegal drugs. Cryptocurrencies like Bitcoin and Monero have revolutionized online transactions by offering anonymity and decentralization, making them the currencies of choice for darknet marketplaces like Incognito.
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In response, administrators claimed the issues were due to a cryptocurrency functionality upgrade affecting usability. Incognito’s Market’s operators went a step further by making off with its users’ funds. The dark web accounts for a whopping 95% of the internet and it’s common knowledge that a great deal of activities there are illegal. One of the transactions cost approximately $20,000, paid for using the platform’s finances.
- Hundreds of pounds of cocaine, methamphetamines, and other drugs were sold on Incognito Market since its launch in October 2020, it said.
- In the 41 months that Incognito Market was open, it facilitated the sale of more than $100 million of narcotics.
- Despite its growing vendor base, Incognito offers a wide array of unique and extraordinary items, going beyond what typical markets offer.
- By keeping transactions within Incognito’s ecosystem, Lin effectively created a closed-loop financial system, similar to those used by legitimate online platforms.
- This mass extortion of users follows reports of numerous individuals being unable to withdraw funds from their buyer or seller accounts just days earlier.
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According to the DOJ, he "had ultimate decision-making authority over every aspect of the multimillion-dollar operation." It is said that Lin ran Incognito Market, connecting sellers of narcotics like heroin, cocaine, LSD, and MDMA to buyers. In a November 2023 undercover operation, a federal agent purchased oxycodone through Incognito Market, but testing revealed the pills were fentanyl. McDonald purchased bulk quantities of fentanyl and cocaine and then directed others to complete hundreds of drug sales involving large quantities of both fentanyl and cocaine.
Lin Oversaw All Aspects Of The Site, Including Managing Employees, Vendors And Customers
Department of Justice announced the results of Operation RapTor—an unprecedented international crackdown on darknet narcotics trafficking. Here, you'll find links to various resources, including educational archives, private forums, anonymous services, and more. My focus lies in analyzing how these hidden networks shape online privacy, security, and digital ethics. Its intuitive interface fosters exploration, but it’s crucial for users to navigate with caution and remain ethically aware due to the inherent nature of darknet activities. Incognito also distinguishes itself with exclusive services such as tailored hacking solutions, malware, and in-demand data dumps, solidifying its role as a pioneer in the darknet market space. Incognito expands its product offerings beyond conventional boundaries, encompassing categories like drugs, fraud, hacking, counterfeits, and even defense/intelligence, each with in-depth subcategories.
In a LinkedIn post in April 2024, Lin shared some pictures from a “cybercrime and cryptocurrency training” at the Saint Lucia Police Academy. The administrator has promised to keep users updated as more information becomes available and efforts continue to recover the lost funds. In addition, all onion links for accessing the site have been removed and orders are being paused to protect remaining assets and prevent further losses. ‘MommaBear’ has announced that all server access keys have been changed to prevent further unauthorized transactions.
Further, in an attempt to extort the members, the admin threatened to leak private messages, transaction information, and order details of vendors and buyers unless they paid a fee ranging from 100 to 20 thousand dollars. One of the servers searched by the agents was the so-called “bank”, a database containing all cryptocurrency transactions. In addition, in November 2023, an undercover law enforcement officer received several tablets purporting to be oxycodone purchased on the Incognito Market.
TRM has identified structured withdrawals from the market to personal wallets and then to services with less stringent KYC. As DOJ noted, the conspiracy involved laundering darknet proceeds through exchanges and peer-to-peer brokers. They often sell across multiple markets or operate standalone storefronts via encrypted apps like Telegram and Signal. Silk Road popularized the use of Bitcoin, anonymizing technologies like Tor, and vendor reputation systems. While this week’s takedown recalls the 2013 shutdown of Silk Road, the evolution of darknet commerce is stark.
The bank also offered an “escrow” service enabling both buyers and customers to have additional security concerning their narcotics transactions. This bank allowed users to deposit cryptocurrency, which facilitated anonymous transactions between buyers and sellers while deducting the site’s commission, again of 5%. This fee funded market operations, including salaries and server costs. Since its inception in October 2020 until its closure in March, Incognito Market sold vast quantities of illegal narcotics, including hundreds of kilograms of cocaine and methamphetamines, globally via the dark web site that could be reached through Tor web browser. This case, an Organized Crime Drug Enforcement Task Forces (OCDETF) operation, is a great example of full of US law enforcement cooperation and collaboration. While Lin is in custody, the case could take a number of twists and turns with Incognito vendors nervous about Lin’s possible cooperation with the government.
"As alleged, Rui-Siang Lin was the architect of Incognito, a $100 million dark web scheme to traffic deadly drugs to the United States and around the world," Attorney General Merrick Garland said in a statement. On March 12, 2020, before Incognito Market launched, LIN emailed himself a rough diagram of a darknet marketplace. In exchange for listing and selling narcotics as a vendor on Incognito Market, each vendor paid 5% of the purchase price of every narcotic sold to Incognito Market. Incognito Market sold illegal narcotics and misbranded prescription medication, including heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam.
