Empire Marketplace Leaders Charged with $430 Million in Illegal Transactions
Two alleged administrators of the darknet marketplace Empire have been arrested on charges related to facilitating illegal transactions totaling over $430 million. Empire was known for the sale of drugs, malware, hacking services, and other illicit goods. According to U.S. authorities, between February 2018 and August 2020, the platform processed more than $430 million in unlawful transactions.
Details of the Investigation
The U.S. Attorney’s Office reports that 38-year-old Florida resident Thomas Pavey, known online as Dopenugget, and 28-year-old Virginia resident Raheim Hamilton, known as Sydney and Zero Angel, operated Empire from 2018 to 2020. During this period, they allegedly facilitated around 4 million deals worth over $430 million. Before founding Empire, Pavey and Hamilton are believed to have sold counterfeit U.S. currency on AlphaBay, another darknet marketplace.
Illegal Activities on Empire
According to the indictment, “Thousands of vendors posted listings on Empire for goods and services, including controlled substances, compromised and stolen account credentials, stolen and counterfeit banking information, and fake currency.”
The U.S. Department of Justice also announced that the investigation has already resulted in the seizure of $75 million in cryptocurrency, as well as cash and precious metals. However, authorities have not disclosed when the arrests took place or whether the sudden shutdown of Empire in 2020 was related to law enforcement actions.
How Empire Operated
All transactions on Empire were conducted in cryptocurrency, often using services designed to obscure the source and recipient of funds, helping users evade law enforcement detection. Pavey and Hamilton allegedly profited by taking a percentage of each cryptocurrency transaction on Empire, using these funds to pay themselves and their team of moderators.
Charges and Potential Penalties
Both administrators now face five charges, including:
- Conspiracy to sell counterfeit U.S. currency on AlphaBay
- Conspiracy to distribute controlled substances via Empire
- Conspiracy to possess unauthorized access devices
- Conspiracy to sell counterfeit currency through Empire
- Conspiracy to launder money to conceal proceeds from illegal activities
If convicted on all counts, Pavey and Hamilton could face life in prison, especially due to the drug trafficking charges. Additionally, if found guilty, they will be required to forfeit all assets acquired with proceeds from their criminal activities, including personal property.