Darknet Marketplace Operators Charged
Two individuals have been charged by federal prosecutors in Illinois for owning and running Empire Market, a notorious darknet marketplace.
Accusations and Operators
Court documents filed on Friday indicate that Thomas Pavey, 38, from Florida, and Raheim Hamilton, 28, from Virginia, allegedly operated Empire Market from 2018 to 2020. During this period, the marketplace facilitated transactions worth $430 million. Users could anonymously purchase illegal goods and services.
Empire Market Only Accepted Crypto
Empire Market operated as a platform for selling drugs and stolen credit card information. It exclusively accepted cryptocurrency as payment. However, the marketplace ceased operations in August 2020.
DOJ Statement
The Department of Justice (DOJ) released a statement on Thursday highlighting the illicit activities on Empire Market. 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 charges against them include conspiracy to engage in drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering.
Charges and Potential Sentences
The DOJ filing states, “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.” These charges are punishable by a maximum sentence of life in federal prison. If convicted, both men could face a maximum sentence of life in prison.
Seizure of Assets
Law enforcement authorities seized $75 million in cryptocurrency during the investigation, along with undisclosed amounts of cash and precious metals. The press release mentioned these details. Arraignments for Pavey and Hamilton have yet to be scheduled. The charges against the operators of Empire Market reflect ongoing law enforcement efforts to combat illegal activities on the darknet.
April Records Lowest Crypto Hack Losses
Downturn in Losses
The cryptocurrency industry experienced a major downturn in combined losses from hacks and scams in April. The month saw the lowest combined losses from crypto-related hacks and scams since 2021, with approximately $25.7 million lost to exploits, hacks, and scams.
Detailed Losses
More specifically, only $25.7 million was lost in attacks throughout the month. This marked the lowest amount since CertiK began tracking such data in 2021. Flash loan attacks accounted for $129,000 in losses, with the largest incident causing $55,000 in damages. This marked the lowest incidence of flash loan attacks since February 2022, and $4.3 million was lost to exit scams.
Recovery of Stolen Funds
In the first quarter of this year, $336 million was lost to Web3 hackers and fraud. Nearly half of the capital was stolen in January alone. Nonetheless, this 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.
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