Crypto Payments and Ratings for Concealing Drugs
The U.S. Department of Justice (DOJ) described cryptocurrency payments as mandatory for buyers and vendors using the platform. Homeland Security Investigations (HSI), a federal agency investigating cross-border crime, led the investigation into Empire Market with law enforcement partners. The DOJ stated:
“Hamilton and Pavey established that all transactions on the site must be conducted using only cryptocurrency.”
The pair encouraged users to employ mixing services, which obscure connections between cryptocurrency transfers, and encryption to protect communications. Buyers could also rate vendors on how effectively they concealed drugs in shipped packages. Such tools sought to impede detection, though bitcoin’s public transaction history remains visible and can be connected with identifying records.
Net drug sales totaled nearly $375 million, including approximately 13.3 kilograms of fentanyl, 446.7 kilograms of cocaine, 72 kilograms of methamphetamine, and 103.4 kilograms of heroin. Other offerings included stolen credentials, personal identifying information, counterfeit currency, and computer-hacking tools. By Aug. 23, 2020, the service had been offline for more than 36 hours.
More Bitcoin, Gold Bars, and a Pending Court Date
Enforcement against darknet payment services has also resulted in substantial forfeitures, including a separate case involving bitcoin mixer Helix. In November 2024, Helix operator Larry Dean Harmon received three years in prison for operating a bitcoin mixing service. The court also ordered him to surrender seized tokens, real estate, and monetary assets valued at more than $400 million.
Pavey, 41, of Ormond Beach, Florida, pleaded guilty last year to a federal drug conspiracy charge and admitted to helping create and operate Empire Market. His agreement encompasses approximately 1,584 bitcoin, two boxes containing 25-ounce gold bars, three automobiles, and two Florida properties. Seeger is scheduled to impose Pavey’s punishment later this month.
