Darknet Drug Marketplace Incognito Market Dismantled with Binance's Aid
Binance Aids in Operation Raptor's Takedown of Darknet Illicit Substance Network
In a significant move, Binance, a leading cryptocurrency exchange, and other international law enforcement agencies have taken down Incognito Market, a notorious darknet drug marketplace responsible for more than $100 million worth of illicit narcotics sales, as part of Operation RapTor.
Incognito Market Shutdown: A Brief
According to the official press release by Binance, Incognito Market was a hub for the trading of over 1,000 types of illicit substances, including heroin, cocaine, and methamphetamine. This platform heavily relied on cryptocurrencies for transactions to maintain user anonymity.
Despite the marketplace's reliance on encryption, privacy tools, and a custom-built internal payment system, investigators worked with Binance's Financial Intelligence Unit (FIU) to trace transactions on the blockchain to individuals connected to the marketplace. Binance's FIU aided in mapping the flow of illicit funds and identified several crypto wallets linked to the platform's operations.
The probe eventually led to a Taiwanese national, "Pharaoh," who managed the operation and raked in millions in profits. "Pharaoh" was arrested, pleaded guilty to charges including narcotics conspiracy, money laundering, and distribution of misbranded drugs in a US federal court.
Simultaneously, Binance's FIU froze over $3.5 million in related cryptocurrency assets, significantly impacting the financial operations of the darknet marketplace.
Binance's Role in Battling Crypto-Related Crimes
Binance has previously collaborated with Europol in dismantling child exploitation platforms by tracking internal payment systems and identifying users. Nils Andersen-Röed, Global Head of Binance's Financial Intelligence Unit, stated,
"Blockchain offers no safe haven for criminal activity. Even with sophisticated privacy tools, every crypto transaction leaves a digital trail, which is increasingly vital in today's law enforcement investigations. Cross-border collaboration and public-private partnerships are no longer optional - they are essential."
T3 FCU's Success Against Illicit Crypto Activities
Apart from Binance, the T3 Financial Crime Unit (T3 FCU), a joint initiative by Tether, Tron, and TRM Labs, has reported impressive results in its fight against crypto-related crimes since its launch in August 2024.
The unit has frozen over $100 million in illicit crypto assets, targeting money laundering, fraud, and terrorism financing. The unit has analyzed millions of global transactions and monitored over $3 billion in USDT activity to combat financial crime in the crypto industry.
References:
- Binance Press Release on Crypto-Related Crimes
- Operation RapTor Takedown Announcement
- T3 FCU Update - March 2025
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- The Binance Financial Intelligence Unit (FIU) played a pivotal role in tracing and mapping the flow of illicit funds in the dismantled darknet drug marketplace, Incognito Market, by following transactions on the blockchain.
- In the aftermath of the Incognito Market shutdown, Binance's FIU managed to freeze $3.5 million in related cryptocurrency assets, impairing the financial operations of the darknet marketplace.
- Binance's Global Head of the Financial Intelligence Unit, Nils Andersen-Röed, emphasized that blockchain does not provide a safe haven for criminal activity, and cross-border collaboration is essential for combating crypto-related crimes.
- Apart from Binance, the T3 Financial Crime Unit (T3 FCU), a collaboration between Tether, Tron, and TRM Labs, has successfully frozen over $100 million in illicit crypto assets, focusing on combating money laundering, fraud, and terrorism financing within the crypto industry.
