Owners of “Empire Market” Charged in Chicago with Operating $430 Million Dark Web Marketplace

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Two individuals have been brought before federal court in Chicago on charges of operating "Empire Market," a clandestine online marketplace that facilitated anonymous transactions for the purchase and sale of illegal goods and services worldwide, amounting to over $430 million.

According to an updated indictment filed on Thursday in the U.S. District Court in Chicago, THOMAS PAVEY, also known as "Dopenugget," aged 38, from Ormond Beach, Fla., and RAHEIM HAMILTON, also known as "Sydney" and "Zero Angel," aged 28, from Suffolk, Va., were the owners and operators of Empire Market from 2018 to 2020. During this time, they facilitated approximately four million transactions between vendors and buyers, with a total value exceeding $430 million. The superseding indictment charges Pavey and Hamilton with conspiracy to engage in drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering. If convicted, they could face a maximum sentence of life imprisonment.

Both Pavey and Hamilton are currently in the custody of U.S. law enforcement. Arraignments for their cases in federal court in Chicago have yet to be scheduled.

Morris Pasqual, the Acting United States Attorney for the Northern District of Illinois, along with Robert W. "Wes" Wheeler, Jr., the Special Agent-in-Charge of the Chicago Field Office of the FBI, Ruth Mendonça, the Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service, and Ivan J. Arvelo, the Special Agent-in-Charge of the New York office of Homeland Security Investigations, announced the release of the superseding indictment. The government's legal team, consisting of Assistant U.S. Attorneys Melody Wells and Ann Marie Ursini, will be representing the case.

Pavey and Hamilton have been accused of collaborating in promoting and vending fake U.S. money on AlphaBay, an illicit online marketplace that was closed down in 2017. The indictment reveals that they established Empire Market on February 1, 2018. Empire Market attracted thousands of vendors and buyers through a specialized software that ensured anonymity and the site's unique address ending in ".onion." The vendors on Empire Market offered a wide range of illegal goods and services, including controlled substances like heroin, methamphetamine, cocaine, and LSD. Additionally, they sold counterfeit currency and stolen credit card information. The indictment also states that buyers had the option to browse through various categories such as "Fraud," "Drugs & Chemicals," "Counterfeit Items," and "Software & Malware." Transactions were conducted using cryptocurrency, and buyers were able to provide feedback and rate their purchases based on multiple criteria, including the level of discretion employed.

Throughout the investigation, federal law enforcement confiscated digital currency worth $75 million during the seizures, along with cash and valuable metals. It is important to note that an indictment does not serve as evidence of guilt. The defendants are considered innocent until proven guilty and have the right to a fair trial, where the government must establish guilt beyond a reasonable doubt.