Two individuals in Illinois, Thomas Pavey and Raheim Hamilton, have been charged by federal prosecutors for owning and operating Empire Market, a darknet marketplace that facilitated illegal transactions worth $430 million from 2018 to 2020. The marketplace, which exclusively accepted cryptocurrency as payment, was known for selling drugs and stolen credit card information. Pavey and Hamilton are facing charges related to drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering, with a maximum sentence of life in federal prison if convicted. The Department of Justice highlighted the illicit activities conducted on Empire Market, and during the investigation, law enforcement authorities seized $75 million in cryptocurrency, along with cash and precious metals. Arraignments for Pavey and Hamilton have yet to be scheduled, reflecting ongoing efforts by law enforcement to combat illegal activities on the darknet.
In April, the cryptocurrency industry saw the lowest combined losses from hacks and scams since 2021, with only $25.7 million lost to exploits, hacks, and scams. This marks a significant decrease in losses compared to previous months, with flash loan attacks accounting for $129,000 in damages and the largest incident causing $55,000 in losses. Exit scams were responsible for $4.3 million in losses, contributing to the overall decrease in cryptocurrency-related attacks. The first quarter of 2022 saw $336 million lost to Web3 hackers and fraud, with nearly half of the capital stolen in January. However, there has been a 23% decrease in losses compared to the first quarter of 2023, with $73,885,000 recovered from stolen Web3 capital in specific situations.
Pavey and Hamilton, already in custody facing separate charges related to selling counterfeit currency on AlphaBay, have now been indicted for conspiracy to engage in drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering in connection with Empire Market. The marketplace, known for its illegal goods and services, ceased operations in August 2020. If convicted, both men could face life in federal prison, according to the Department of Justice filing. The charges against the operators of Empire Market demonstrate the ongoing efforts of law enforcement agencies to combat illegal activities on the darknet, with significant seizures of cryptocurrency, cash, and precious metals during the investigation.
The Department of Justice released a statement detailing the charges against Pavey and Hamilton, accusing them of conspiring with others to engage in various illegal activities on Empire Market. The indictment includes charges of drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering, all punishable by a maximum sentence of life in federal prison. The recent crackdown on darknet activities reflects law enforcement’s commitment to combatting illicit transactions and ensuring the safety and security of online marketplaces. The arraignments for Pavey and Hamilton have not yet been scheduled, and the ongoing investigation into Empire Market highlights the importance of regulatory measures to prevent further criminal activities on the darknet.
The charges brought against Pavey and Hamilton for their involvement in operating Empire Market underscore the significant efforts of law enforcement in combating illegal activities on the darknet. The marketplace, known for facilitating illegal transactions totaling $430 million, was a hotspot for purchasing drugs and stolen credit card information. With charges including drug trafficking, computer fraud, and money laundering, both men could face a maximum sentence of life in federal prison if convicted. The seizure of $75 million in cryptocurrency, along with additional assets, during the investigation shows the extent of criminal activities on the darknet and the importance of crackdowns by law enforcement agencies. The ongoing battle against illegal activities on the darknet highlights the need for increased vigilance and regulation to ensure the safety and security of online marketplaces and prevent future incidents of cybercrime.
