Two individuals, Thomas Pavey and Raheim Hamilton, have been charged by federal prosecutors in Illinois for owning and operating Empire Market, a darknet marketplace that facilitated illegal transactions worth $430 million from 2018 to 2020. The marketplace exclusively accepted cryptocurrency as payment and was known for the sale of drugs and stolen credit card information. Pavey and Hamilton were already in custody for selling counterfeit currency on AlphaBay, another darknet market that was shut down in 2017. The recent charges against them include conspiracy to engage in drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering, with a maximum possible 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.
In a positive development, the cryptocurrency industry experienced a significant decrease in combined losses from hacks and scams in April, marking the lowest amount since 2021. Approximately $25.7 million was lost to exploits, hacks, and scams in the month, with flash loan attacks accounting for $129,000 in losses, the lowest incidence since February 2022. Exit scams caused $4.3 million in damages. The first quarter of 2022 saw $336 million lost to Web3 hackers and fraud, with nearly half stolen in January alone. However, this number represents a 23% decrease compared to the first quarter of 2023. Additionally, $73,885,000 has been recovered from stolen Web3 capital in seven specific situations.
The charges against the operators of Empire Market illustrate the ongoing efforts of law enforcement agencies to combat illegal activities on the darknet. The Department of Justice released a statement highlighting the illicit activities conducted on Empire Market, emphasizing the charges of drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering brought against Pavey and Hamilton. If convicted, both men could face a maximum sentence of life in federal prison. The marketplace, known for facilitating transactions of illegal goods and services, exclusively accepted cryptocurrency as payment and ceased operations in August 2020. Authorities seized $75 million in cryptocurrency, cash, and precious metals during the investigation.
Pavey and Hamilton were facing separate charges related to selling counterfeit currency on AlphaBay before being charged for their involvement in Empire Market. The recent charges add to their legal troubles and include conspiracy to engage in drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering. The indictment indicates that they conspired with others to partake in these illegal activities on the darknet marketplace. The arraignments for Pavey and Hamilton have yet to be scheduled, and if found guilty, they could face a maximum sentence of life in federal prison. The charges against the operators of Empire Market reflect ongoing efforts by law enforcement agencies to combat illegal activities on the darknet.
In summary, the operators of Empire Market, Thomas Pavey and Raheim Hamilton, have been charged by federal prosecutors for running a darknet marketplace that facilitated transactions worth $430 million from 2018 to 2020. The marketplace exclusively accepted cryptocurrency as payment and was known for the sale of drugs and stolen credit card information. In a positive development, the cryptocurrency industry experienced a significant decrease in combined losses from hacks and scams in April, marking the lowest amount since 2021. Authorities seized $75 million in cryptocurrency, cash, and precious metals during the investigation. The charges against Pavey and Hamilton include drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering, with a maximum possible sentence of life in federal prison if convicted. These charges reflect ongoing efforts by law enforcement agencies to combat illegal activities on the darknet.
