Federal Prosecutors Charge Two Men for Running Darknet Marketplace Empire Market

Major Darknet Bust

Federal prosecutors in Illinois have charged two individuals, Thomas Pavey, 38, from Florida, and Raheim Hamilton, 28, from Virginia, for owning and operating Empire Market, a notorious darknet marketplace. Court documents reveal that the duo allegedly ran the marketplace from 2018 to 2020, facilitating anonymous transactions worth $430 million for illegal goods and services.

Crypto-Only Transactions

Empire Market, which accepted only cryptocurrency, was a hub for the sale of drugs and stolen credit card information before it ceased operations in August 2020. The Department of Justice (DOJ) detailed these illicit activities in a statement released on Thursday.

Additional Charges and Previous Arrests

Pavey and Hamilton were already in custody for separate charges related to selling counterfeit currency on AlphaBay, another darknet market shut down in 2017. The recent indictment includes conspiracy to engage in drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering. If convicted, they could face a maximum sentence of life in federal prison.

“The indictment charges Pavey and Hamilton with conspiring with each other and others to engage in drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering,” the DOJ filing stated.

During the investigation, authorities seized $75 million in cryptocurrency, along with undisclosed amounts of cash and precious metals. Arraignments for Pavey and Hamilton have yet to be scheduled.

Law Enforcement’s Continued Efforts

These charges highlight the ongoing efforts of law enforcement agencies to combat illegal activities on the darknet. The crackdown on Empire Market is part of a broader initiative to dismantle illicit marketplaces and curb cybercrime.

April Records Lowest Crypto Hack Losses

In a related note, the cryptocurrency industry saw a significant decrease in combined losses from hacks and scams in April. The month recorded the lowest combined losses since 2021, with approximately $25.7 million lost to various exploits. This includes $129,000 from flash loan attacks and $4.3 million from exit scams.

The first quarter of this year saw $336 million lost to Web3 hackers and fraud, marking a 23% decrease compared to the same period in 2023. Notably, $73,885,000 has been recovered from stolen Web3 capital in seven specific incidents.