Tsinghua Graduate Arrested for $100 Million Dark Web Drug Market

An elite student from Tsinghua University has been arrested for operating an international drug trading website, Incognito Market, on the dark web. The student, identified as Lin Rui Xiang, is a graduate of the Department of Finance at Tsinghua University. Lin Rui Xiang, who had portrayed himself as a prominent cryptocurrency trader, was targeted by a hacking group that used malicious tactics to steal all the currency and NFTs from his exchange account, resulting in significant financial distress.

Lin Rui Xiang founded the drug trading platform Incognito Market in 2020, which attracted over 200,000 users worldwide, including thousands of drug dealers conducting transactions on the platform. Before the platform was busted by U.S. law enforcement in March 2024, within a short period of three years, the dark web had sold drugs and narcotics worth over $100 million.

During this time, Lin Rui Xiang temporarily shut down Incognito Market in 2024 but reopened the website a few days later. However, this "surprise" demanded that all platform users pay a maximum of $20,000 as a "hush money," threatening to expose incriminating evidence if the fee was not paid. The reason he resorted to blackmailing users in desperation was due to his self-proclaimed identity as a cryptocurrency player in recent years. He often boasted about his significant gains and losses on social media, showcasing his achievements. He bragged about reaching "VIP Level 3" on the exchange, signifying a monthly trading volume exceeding $1 million.

His ostentatious behavior attracted the attention of a group of hackers who posed as investors. They successfully tricked Lin Rui Xiang into downloading a virus program, ultimately stealing his virtual currency and NFTs from his account. Additionally, reports indicated that the highly popular NFT, "Bored Ape Yacht Club," even owned by the music icon Jay Chou, has been sold for prices ranging from tens of thousands to several hundred thousand dollars. At its peak, the price surged to over $3.4 million. Lin Rui Xiang had at least owned three, making his losses substantial after the theft.

This hacker incident severely damaged Lin Rui Xiang's finances, causing a cash flow crisis. Consequently, before shutting down Incognito Market, he decided to extort users as a final act. Following this extortion operation, the credibility of Incognito Market collapsed entirely, leading to the platform's collapse.