NTU drug lord Lin Ruixiang sentenced to 30 years! Profited over $100 million from drug sales, U.S. authorities: Blockchain is not a talisman

Taiwanese Drug Lord Lin Rui-xiang Earned Over $105 Million from Dark Web Drug Platform, Sentenced to 30 Years in the U.S. The U.S. emphasizes that blockchain is not a get-out-of-jail-free card for criminals; this case also demonstrates the成果 of judicial cooperation and asset sharing between Taiwan and the U.S.

Taiwanese Academic Star Turned Drug Lord Lin Rui-xiang Sentenced to 30 Years in the U.S.

On February 3rd, the U.S. Department of Justice issued a press release stating that New York Southern District Federal Prosecutor Jay Clayton announced that 24-year-old Taiwanese university graduate Lin Rui-xiang was sentenced to 30 years in prison for operating the dark web drug marketplace “Incognito Market.” He admitted to conspiracy to distribute drugs, money laundering, and selling counterfeit pharmaceuticals last year.

Prosecutor Clayton pointed out that Lin Rui-xiang used Incognito Market to sell over $105 million worth of illegal drugs worldwide, which not only worsened the opioid crisis but also caused at least one death, affecting over 470,000 users and their families.

Clayton emphasized that this sentence sends a message to drug traffickers: “The internet, decentralization, or blockchain technology are not shields for drug operations.” Judge Colleen McMahon further stated during sentencing that this was the most severe drug trafficking case she has seen in her 27.5 years of law enforcement.

Review of the Taiwan Drug Lord Case: How Lin Rui-xiang “Pharaoh” Built a Drug Empire

Since October 2020, Lin Rui-xiang, under the code name Pharaoh, established and operated “Incognito Market” on the dark web.

Until the platform shut down in March 2024, it sold over a ton of drugs, including more than 1,000 kilograms of cocaine and methamphetamine, as well as fentanyl pills disguised as prescription drug Oxycodone.

Image source: U.S. Department of Justice. Incognito Market aims to facilitate global online drug transactions and integrates many functions of legitimate e-commerce websites.

Lin Rui-xiang was the top manager of Incognito Market, holding all decision-making power, and charged a 5% fee on each transaction, profiting personally over $6 million.

To facilitate transactions and conceal money flows, Lin Rui-xiang also designed a mechanism called Incognito Bank. Buyers and sellers could deposit cryptocurrencies into virtual accounts on the platform. After the transaction, funds minus the fee would be transferred to the seller’s account, allowing both parties to remain anonymous.

The platform features a sleek interface, with branding and customer service functions, operating in a highly commercialized manner, claiming to promote seamless global drug trade.

Image source: U.S. Department of Justice. Lin Rui-xiang designed Incognito Bank to facilitate online drug sales.

Lin Rui-xiang Previously Served as a Crime Instructor and Later Engaged in Ransomware

While operating illegal websites, Lin Rui-xiang also held a substitute service role for Taiwan’s diplomatic service, having been dispatched to Saint Lucia, a diplomatic ally of Taiwan.

Ironically, he served as a lecturer at seminars organized by local police, teaching officers how to handle “cybercrime and cryptocurrencies,” even boasting about this experience on his personal Facebook. According to his LinkedIn profile, between 2023 and 2024, he also obtained blockchain analysis platform Chainalysis and Google cybersecurity certifications via Coursera.

Image source: LinkedIn. Taiwanese drug lord Lin Rui-xiang obtained blockchain and cybersecurity certifications.

However, just before the platform shut down in March 2024, Lin Rui-xiang carried out extortion against platform users. The U.S. Department of Justice stated that he fled with funds, stealing at least $1 million from users’ deposits in Incognito Bank.

Additionally, he threatened buyers and suppliers that if they did not pay the ransom, he would publicize their transaction records and cryptocurrency addresses, even openly admitting on the website that it was an extortion operation.

• Previous reports: Media coverage of Taiwanese drug lord Lin Rui-xiang’s background

Taiwan-U.S. Judicial Cooperation Achievements, or the Next Benchmark for Asset Sharing

During the investigation of Lin Rui-xiang’s case, close cooperation between Taiwan and the U.S. judicial authorities was demonstrated.

The United Daily News previously reported that this case was a significant case during the tenure of Taiwan’s Minister of Justice Zheng Mingqian as Taipei District Prosecutor. Taiwanese prosecutors, upon receiving intelligence from the U.S., assisted in investigating and seizing Lin Rui-xiang’s assets in Taiwan. Binance also cooperated with Taiwan-U.S. prosecutors, freezing illegal funds worth over $3.5 million (about NT$100 million).

It is understood that in 2024, the U.S. Homeland Security Investigations (HSI) collaborated with Taiwan on a money laundering case involving a Taiwanese woman surnamed Yeh, successfully sharing $7 million in assets seized by the U.S. with Taiwan. As the Lin Rui-xiang case concludes, the large illegal proceeds seized in this case are likely to become a key benchmark for cross-border asset sharing between Taiwan and the U.S.

Further reading:
Encrypted drug trafficking via Telegram is hard to prevent; Korean police bust smuggling groups and hide the goods in the mountains!