Two men are facing federal charges for allegedly operating Empire Market, a major darknet marketplace that facilitated more than $430 million in illegal transactions worldwide. The charges were filed last week in federal court in Chicago, where both defendants are currently in custody.

The investigation was led by Homeland Security Investigations (HSI) New York, in coordination with the FBI’s Chicago Field Office and the U.S. Postal Inspection Service (USPIS) Chicago Division.

Allegations Against Empire Market Operators

According to a superseding indictment, Thomas Pavey and Raheim Hamilton owned and operated Empire Market from 2018 through 2020. During that period, the marketplace allegedly facilitated approximately four million transactions between vendors and buyers, generating more than $430 million in illicit sales.

Prosecutors allege that Pavey and Hamilton conspired to engage in drug trafficking, computer fraud, access device fraud, counterfeiting, and money laundering.

Court filings state that prior to launching Empire Market, the two worked together on AlphaBay, a prominent darknet marketplace shut down by law enforcement in 2017, where they allegedly advertised and sold counterfeit U.S. currency. Following AlphaBay’s takedown, the defendants are accused of launching Empire Market in 2018.

Marketplace Operations and Illicit Offerings

According to the indictment, Empire Market enabled vendors to sell a wide range of illegal goods and services, including controlled substances such as heroin, methamphetamine, cocaine, and LSD, as well as counterfeit currency and stolen credit card information.

Buyers could browse listings organized into categories such as Fraud, Drugs & Chemicals, Counterfeit Items, and Software & Malware. Transactions were conducted using cryptocurrency, and users were able to leave reviews and ratings based on criteria such as delivery speed and operational “stealth.”

Financial Flows and Asset Seizures

Blockchain analysis conducted during the investigation showed that Empire Market functioned as a major exchange within the darknet ecosystem. As illustrated by TRM Labs’ graph visualizer, the platform had significant incoming exposure from Western-based virtual asset service providers (VASPs) and outgoing exposure to cryptocurrency mixers, peer-to-peer marketplaces, and other unhosted wallets.

Law enforcement authorities seized cryptocurrency valued at approximately $75 million at the time of seizure, along with cash and precious metals.

Rise and Fall of Empire Market

According to analysis by TRM Labs’ blockchain intelligence team, Empire Market emerged as one of the largest Western darknet marketplaces following the takedowns of AlphaBay and Hansa Market in 2017.

After those operations, the Western darknet market ecosystem entered a period of instability. User trust declined sharply after it was revealed that law enforcement had covertly operated Hansa Market for nearly a month, leading to a significant drop in darknet market activity and the absence of a clear successor platform.

Empire Market appeared in February 2018, approximately six to seven months after the AlphaBay and Hansa shutdowns, and rapidly rose to prominence. Its user interface closely resembled AlphaBay’s design, a deliberate choice believed to foster familiarity and trust among displaced users.

Users frequently described Empire as a stable and well-managed platform, citing its responsive moderation team, low vendor bond requirements, and escrow-based transaction system. While the platform initially allowed weapons listings, these were later prohibited. Empire Market quickly became the dominant Western darknet marketplace until its sudden disappearance in August 2020, widely believed to be an exit scam.

Role of the El Dorado Task Force

The case was partially investigated by HSI New York’s El Dorado Task Force (EDTF), a multi-agency money laundering task force composed of more than 200 personnel from approximately 35 federal, state, and local law enforcement and regulatory agencies.

The EDTF includes a dedicated Cyber Division and focuses on dismantling organizations involved in laundering proceeds from narcotics trafficking and other financial crimes. Since its establishment in 1992, the task force has been responsible for more than 2,100 arrests and the seizure of approximately $600 million in illicit assets.