Binance Assists in International Drug Crackdown, Exposes Dark Web Drug Financing
The world’s largest virtual asset trading platform, Binance, has revealed its collaboration with law enforcement agencies in the United States and Taiwan to help dismantle the significant dark web drug market, Incognito Market.
This website is one of the largest drug markets globally, having sold over $100 million (approximately 3 billion New Taiwan dollars) worth of drugs during its operation. Binance’s cooperation played a crucial role in this international law enforcement action, helping to successfully dismantle the criminal network and freeze illegal funds valued at over $3.5 million (approximately 100 million New Taiwan dollars).
The U.S. Department of Justice recently announced the results of an international joint operation code-named Operation RapTor, which targeted dark web activities and drug trafficking, setting a record for the largest enforcement action ever. Among the significant outcomes of this operation was the seizure of the Incognito Market.
Global Dark Web Drug Market Incognito Market Raided, Main Suspect Arrested in Taiwan
In this case, Binance’s Financial Intelligence Unit (FIU) provided crucial intelligence to law enforcement agencies in Taiwan and the U.S., playing a key role in assisting them in identifying the suspects. Additionally, Binance froze virtual assets valued at approximately $3.5 million, contributing to the dismantling of this vast global drug network.
According to the U.S. Department of Justice and public information, the website allowed users to anonymously search for and purchase over a thousand types of drugs, including heroin, cocaine, and methamphetamine. To facilitate transactions, the platform even established its “bank” system, which was a significant part of its operations, utilizing virtual assets as the primary medium of exchange.
However, despite the operators setting up multiple firewalls to evade detection, law enforcement successfully identified the relationship between the virtual asset wallets used by the platform’s “bank” system and the wallet address of the website’s administrator through in-depth investigations. With ample evidence, they ultimately confirmed that the actual responsible person behind the website was a suspect from Taiwan, known by the alias “Pharaoh,” who supervised all operational affairs of the platform.
Currently, the suspect was arrested last year and has pleaded guilty to U.S. law enforcement authorities for one count of drug conspiracy, one count of money laundering, and one count of conspiracy to sell counterfeit and misbranded drugs.
Nils Andersen-Röed, Global Head of Binance’s Financial Intelligence Unit, stated, “Although criminals meticulously attempt to evade tracking using various encryption technologies, this case once again proves that blockchain is not a lawless territory. The digital footprints left by virtual asset transactions have once more become an important source of intelligence for combating crime.”
Nils emphasized, “In the face of increasingly complex virtual asset investigation cases, such international cooperation and public-private collaboration are no longer options but necessary conditions.”
Previously, Binance announced its key role in another case led by the European Cybercrime Centre, which dismantled one of the largest child exploitation networks globally, Kidflix, including assisting in exposing the internal operational mechanisms of Kidflix’s payment infrastructure and identifying over a hundred Kidflix users.
These successful cases not only reflect Binance’s firm commitment to collaborative security but also showcase its strong resources and capabilities in combating financial crime and maintaining the security of the virtual asset ecosystem.