Binance's Financial Intelligence Unit (FIU) has been instrumental in the international takedown of Incognito Market, a major darknet marketplace responsible for over $100 million in illicit drug sales. Part of Operation RapTor—a joint initiative involving the U.S. Department of Justice, Taiwanese authorities, and other global law enforcement agencies—the crackdown led to the arrest of Rui-Siang Lin, alias "Pharaoh," who managed the platform's illegal operations.
Despite Incognito Market's use of advanced privacy tools and layered firewalls, Binance's FIU successfully traced crypto wallet transactions linked to the marketplace's internally developed banking infrastructure. This led to the freezing of more than $3.5 million in cryptocurrency assets associated with the platform, significantly disrupting its financial network.
Binance emphasizes the power of blockchain forensic techniques to expose pseudonymous transactions that leave digital trails, reinforcing that crypto activity is not a safe haven for criminals. The operation resulted in arrests of 270 individuals worldwide, seizure of over $200 million in fiat and cryptocurrency, and confiscation of two tons of illicit drugs.
Following regulatory scrutiny and a $4.3 billion settlement with the U.S. DOJ in 2023, Binance has significantly enhanced its compliance and investigative capabilities. The company continues to build partnerships with global law enforcement, underscoring a commitment to transparency, accountability, and trust in the crypto ecosystem. This case exemplifies how public-private cooperation can effectively combat cybercrime and signals a shift towards integrated security priorities in the crypto industry.