Lin, known online as “Pharoah,” was arrested at John F. Kennedy Airport in New York on May 18. FBI Deputy Director in Charge James Smith said in the official statement that Lin operated the “Incognito Market” for nearly four years and “generated millions of dollars in personal profit.”

The illegal platform was one of the largest of its kind and was an onion-based e-commerce platform accessible via the Tor browser. The browser allows users to access the dark web and browse the internet anonymously by routing their traffic through a network of servers.

The platform works with cryptocurrencies such as Bitcoin and Monero, allowing users to purchase a variety of drugs such as LSD, MDMA, and prescription amphetamines such as Adderall. The arrest was made possible mainly because the marketplace offered discounts and escrow services to encourage the use of cryptocurrencies.

The FBI, with the help of other law enforcement agencies and several undercover operations, was able to trace transactions made on the platform back to Lin. Transactions were made to an anonymous central crypto exchange account that was KYC (Verify Your Identity) by Lin.

At least four of the Bitcoin transfers authorities traced from Lin’s wallet were directed to an “exchange service” to convert it into XMR, a privacy-focused cryptocurrency. The XMR was then deposited into a crypto exchange account managed by Lin.

The FBI obtained Lin’s driver’s license, an email account and phone number through the exchange, enabling his arrest. The account grew from holding $63,000 in 2021 to almost $4.2 million by 2023. Between July and November 2023, $4.5 million was deposited into another anonymous stock exchange account linked to the case.

The phone number was linked to a Namecheap account, a domain hosting platform. Funds from Lin’s wallet were used to purchase a domain name promoting the dark web marketplace. Lin also held accounts at crypto exchanges Binance and Kraken, which have now been seized by the FBI. According to the Department of Justice (DOJ), the marketplace was shut down in March 2024.

Lin faces a single charge of engaging in a continuing criminal enterprise. This crime carries a sentence of life in prison without the possibility of parole. He also faces a drug conspiracy charge that carries a 10-year minimum prison sentence and a potential life sentence.

Additionally, Lin has been charged with money laundering and faces charges of conspiracy to sell counterfeit and unlabeled drugs. The maximum penalty for this crime is five years. Earlier this month, the FBI also uncovered a $43 million Ponzi ring that was promoted as a crypto investment scheme promising high returns.