It kind of does look like a baggie of cocaine, but if you look closely he is definitely eating paper. I actually saw him make use of a typical magicians trick, like the ones where they make a silver key appear for their handcuffs or pull out a tiny folded card that somehow made it into their mouth. As he sneaks over to the square of paper, he unhinges his jaw just like a goblin shark can. He must have found some magician-goblin shark mixed DNA and completed the transformation process, and now has complete functional control of his mouth. It's an old school trick, not really done anymore these days but magicians make great profits using it.