Binance, the world’s largest crypto exchange, has supported law enforcement in the US and Taiwan with a takedown of The Incognito Market on the Darknet Marketplace. The exchange was disclosed in a shared press release. Cryptopolitan.
According to the company, its Financial Information Unit (FIU) was crucial for law enforcement to help law enforcement crack down on markets, promote illegal drug sales and have an international network.
Incognito Market is a platform that allows users to anonymously purchase more than 1,000 illicit drugs, and has reportedly accelerated more than $100 million in transactions. The market is reportedly using several cryptocurrencies within the internal banking system to enable payments using several cryptocurrencies to ensure anonymity and avoid detection.
However, the FIU provided information to law enforcement, tracked illegal transactions and helped identify suspects. Beyond that, the exchange frozen $3.5 million worth of crypto connected to the case.
Binance described the news of its involvement as evidence that blockchain networks are not secure for criminal conduct. Nils Andersen-Roed, global head of Binance FIU, noted that privacy tools cannot even prevent law enforcement from detecting illegal use of crypto.
Andersen Lord said:
“Even with sophisticated privacy tools, all crypto transactions leave the digital trail, which is becoming increasingly important in law enforcement investigations today.”
Meanwhile, Andersen-Roed said Binance’s cooperation with law enforcement is part of a new order in the fight against crime. He noted that as cryptography cases become more complicated, transnational sensual collaboration is essential.
Interestingly, Binance said it also played a key role in the child exploitation platform Kidflix Takedown by helping European law enforcement reveal the platform’s internal payment infrastructure and revealing the users associated with it.
This is all part of the exchange’s efforts to work with authorities as part of its commitment to transparency and security. The exchange fired in 2023 and was fined more than $4 billion by the U.S. Department of Justice, which strengthened compliance standards while increasing cooperation with authorities.
270 individuals arrested on four continents
Meanwhile, the takedown of the secret market is just one of the major operations by US law enforcement agencies and international partners known as Operation Raptor.
Previous announcements by the US Department of Justice (DOJ) have arrested darknet administrators, vendors and buyers in several countries, including the US, UK, Brazil, Austria, South Korea, Switzerland, Netherlands and Spain.
The DOJ has made it the biggest seizure ever by the Joint Criminal Opioid and Darknet Enforcement (JCODE) team, recovering more than $200 million in Fiat and digital assets, and 2 metres of drugs and over 180 firearms.
One of the arrests through information provided by Binance was Rui-Siang Lin, the administrator of the Incognito Market, who used the nickname Pharaoh. Lynn was arrested in court in 2024 and pleaded guilty to three charges.
Binance continues to rule
Meanwhile, Binance’s announcement comes days after Tigran Gambaryan, head of financial crime compliance, left the door. The Gambarian, who fell into the public spotlight after spending eight months in detention in Nigeria, announced an exit on LinkedIn, adding that he is focusing on new challenges.
It’s not a complete surprise considering his exit had hinted at returning to the public sector in his interview after fleeing detention. Still, he has joined the list of around 16 executives who have left Binance in the past two years.
Despite some well-known departures, Binance thrives in improving compliance culture under CEO Richard Teng and still controls trading volume. The company recently released its 31st reserve evidence, showing a net worth of over $130 billion.
Former CEO and co-founder Changpeng Zhao remains influential, but the ideal of exchange no longer follows Zhao’s previous principles. For example, Binance is reportedly considering establishing a global headquarters. This separates Zhao’s belief that physical headquarters is not required for replacement.
