The largest arrest in an anti-drug operation: the leader of Incognito Market sentenced to 30 years for smuggling cocaine and other illegal substances

The federal court has issued a harsh sentence in one of the largest cases involving illegal drug trafficking through cryptocurrency networks. The darknet operator, known by the pseudonym “Pharaoh,” received a 30-year prison term for managing the criminal platform Incognito Market, which facilitated the trade of cocaine, methamphetamine, and counterfeit medications totaling over $105 million.

From Incognito Market to Closure: How a Crypto Market Turned into a Drug Market

Incognito Market operated as a typical cryptocurrency marketplace on the dark web, but its main focus quickly shifted to smuggling illegal substances. The platform facilitated the movement of thousands of kilograms of cocaine and other psychoactive substances between suppliers and buyers. According to NS3.AI, transactions were conducted exclusively through blockchain transfers, providing participants with an illusion of anonymity — an illusion shattered by law enforcement during the federal investigation.

The Fall of “Anonymity”: Using Cocaine and Cryptocurrency as Tools for Crime

The platform’s leader, Rui-Ciang Lin, not only oversaw drug trafficking but also attempted to blackmail users after law enforcement officially shut down the marketplace. Court proceedings revealed that Lin personally appropriated and confiscated more than $105 million in user assets, trying to hide the traces of his crimes. The court, finding him guilty, left no doubt about the severity of the offense — a 30-year sentence is a clear signal to those intending to use cocaine and other substances in organized schemes through crypto tools.

This decision underscores law enforcement’s growing ability to track cryptocurrency flows related to drug trafficking and serves as a warning about the unpredictability of anonymity on the blockchain.