Federal prosecutors have charged two men for operating the darknet marketplace Empire Market, a hub for illegal transactions. Thomas Pavey from Florida and Raheim Hamilton from Virginia allegedly ran the platform from 2018 to 2020, facilitating transactions worth $430 million. The marketplace, known for selling drugs and stolen credit card information, exclusively accepted cryptocurrency as payment before shutting down in August 2020.
The Department of Justice released a statement outlining the illicit activities conducted on Empire Market. Pavey and Hamilton, already facing charges for selling counterfeit currency on another darknet market, now face additional charges including drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering. If convicted, they could receive a maximum sentence of life in prison.
During the investigation, authorities seized $75 million in cryptocurrency, cash, and precious metals. Arraignments for Pavey and Hamilton are pending. These charges reflect law enforcement’s ongoing efforts to combat illegal activities on the darknet.
In April, the cryptocurrency industry saw a decrease in combined losses from hacks and scams, with only $25.7 million lost to exploits, hacks, and scams. This marked the lowest amount since data tracking began in 2021. Flash loan attacks resulted in $129,000 in losses, while exit scams accounted for $4.3 million. The first quarter of the year saw $336 million lost to Web3 hackers and fraud, with $73,885,000 recovered in specific cases. Despite the decrease compared to 2023, efforts to address cybersecurity threats continue.
