Binance Collaborated With U.S. and Taiwan Law Enforcement, Helping to Dismantle a Notorious Darknet Narcotics Marketplace “Incognito Market”

Binance, the world’s largest cryptocurrency exchange by trading volume and registered users, can now announce that it played a key role in assisting U.S. and Taiwanese law enforcement in an operation that led to the takedown of Incognito Market, one of the world’s largest darknet drug marketplaces – which facilitated over USD $100 million (approximately NT$3 billion) in illegal drug sales.

The U.S. Department of Justice recently announced the results of a record-breaking international operation targeting darknet activities and drug trafficking, codenamed “Operation RapTor.” Among the key achievements highlighted in the operation was the takedown of “Incognito Market.”

Binance’s Financial Intelligence Unit (FIU) team provided critical intelligence that helped identify the suspect and trace illicit transactions. By freezing over USD $3.5 million (approximately NT$100 million) in crypto assets linked to the case, Binance significantly aided efforts to dismantle the transnational drug trafficking network.

According to the U.S. Department of Justice and public records, Incognito Market allowed users to anonymously browse and purchase more than 1,000 types of illicit drugs – including heroin, cocaine, and methamphetamine. To streamline these transactions, the marketplace even has its own “banking” system mainly powered by cryptocurrencies.

Despite efforts to avoid detection by installing multiple layers of firewalls, investigators successfully traced crypto wallets used in the platform’s “banking” system back to those controlled by its administrator. With substantial evidence, authorities identified the individual behind the site as a Taiwanese national surnamed Lin, known by the alias “Pharaoh,” who profited millions by leading and supervising the platform’s illegal operations.

Lin was arrested last year and later pleaded guilty in the United States to three federal offenses: narcotics conspiracy, conspiracy to sell adulterated and misbranded medication and money laundering.

“This case is a powerful reminder that blockchain offers no safe haven for criminal activity,” said Nils Andersen-Röed, Global Head of Binance’s Financial Intelligence Unit. “Even with sophisticated privacy tools, every crypto transaction leaves a digital trail – which is increasingly vital in today’s law enforcement investigations.”

Andersen-Röed emphasized, “Cross-border collaboration and public-private partnerships are no longer optional – they are essential. As crypto cases grow more complex, global cooperation is the solution to effective crime-fighting.”

This announcement follows Binance’s recent disclosure of its key role in supporting Europol’s takedown of Kidflix, one of the world’s largest child exploitation networks. Binance assisted in uncovering the platform’s internal payment infrastructure and identifying over 100 users linked to the illicit operation.

Together, these successful operations highlight Binance’s ongoing commitment to security, transparency, and cooperation. They also reflect the company’s growing capabilities and resources in supporting global financial crime investigations and protecting the integrity of the crypto ecosystem.