Federal prosecutors have filed charges against two men for operating the darknet marketplace known as Empire Market. Thomas Pavey, 38, from Florida, and Raheim Hamilton, 28, from Virginia, allegedly managed the marketplace from 2018 to 2020, facilitating transactions worth $430 million for the purchase of illegal goods and services.
Empire Market exclusively accepted cryptocurrency as payment and was a hub for the sale of drugs and stolen credit card information. The marketplace ceased operations in August 2020, but the Department of Justice (DOJ) highlighted the illicit activities on Empire Market in a recent statement. Pavey and Hamilton were already in custody for selling counterfeit currency on AlphaBay, another darknet market.
The charges against them include conspiracy to engage in drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering, with a maximum sentence of life in federal prison if convicted. Law enforcement authorities seized $75 million in cryptocurrency, along with cash and precious metals, during the investigation.
Arraignments for Pavey and Hamilton are yet to be scheduled, as the charges reflect ongoing efforts to combat illegal activities on the darknet. In April, the cryptocurrency industry saw a decrease in losses from hacks and scams, with only $25.7 million lost that month, the lowest since 2021. Flash loan attacks accounted for $129,000 in losses, while exit scams caused $4.3 million in damages. Despite $336 million lost to Web3 hackers and fraud in the first quarter of the year, there was a 23% decrease compared to the same period in 2023. Additionally, $73,885,000 has been recovered from stolen Web3 capital in specific cases.