Dark Web Marketplace Involved in $430 Million Fraud Busted

• The two people who were running an illegal marketplace called Empire Market" on the dark web have finally been arrested.
• They have been charged with money laundering, computer fraud, access device fraud, counterfeiting, and drug trafficking.
• The marketplace was used to sell drugs, chemicals, counterfeit money bills, credit card numbers, and so on.

A dark web marketplace by the name Empire Market" has been disrupted in Chicago. The two men running the operation have been charged in a federal court, according to an announcement by the US Department of Justice (DOJ).

The accused have been identified as Thomas Pavey (aka Dopenugget") and Raheim Hamilton (aka Sydney" and Zero Angel").

Here's a detailed list of the charges they are facing:

• Conspiracy to sell counterfeit U.S. currency on AlphaBay (more on this later).
• Conspiracy to distribute controlled substances through Empire Market.
• Conspiracy to possess unauthorized access devices.
• Conspiracy to sell counterfeit currency on Empire Market.
• Conspiracy to commit money laundering to conceal proceeds from illegal activities.

These crimes have a maximum sentence of life imprisonment in federal prison but their sentences are yet to be finalized. Currently, they are under the custody of US law enforcement.

Apart from a prison sentence, the accused might also have to give up any property/asset earned through this operation. If the original asset is beyond reach, substitute assets will be taken in place.

Speaking of assets, the authorities have already seized $75 million worth of cryptocurrency, as well as cash and precious metals during the investigation.

The U.S. Department of Justice (DOJ) also released an indictment last week, which revealed that before starting Empire Market, the duo was also involved in selling counterfeit U.S. currency on AlphaBay.

A Little about the Empire Market Operation

According to reports, the operation was active between February 2018 and 2020. During this time, the duo facilitated over $430 million worth of illegal transactions on drugs, jewelry, credit card numbers, chemicals, fake money bills, malware, and more. Payment options included Bitcoin, Litecoin, and Monero.

However, the operation suddenly shut down in 2020 amid persistent extortion-based DDoS waves, leaving its users with no time to withdraw their escrow funds. This enraged some users who labelled this move as an exit scam.

It's important to note that the deep web (which includes the dark web) comprises around 96% of the Internet. Only 4% is the surface web i.e. the internetas we know it. This makes this arrest an important landmark in the cybercrime landscape. Questioning might lead to more such marketplaces being found in the near future.

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