Raheim Hamilton, 30, of Suffolk, Virginia, was sentenced Monday to 40 years in federal prison and fined $5 million by U.S. District Judge Steven C. Seeger in Chicago. Hamilton pleaded guilty earlier this year to a drug conspiracy charge related to his role as co-creator of darknet marketplace Empire Market.
Operating alongside co-creator Thomas Pavey from 2018 to 2020, Hamilton helped run a platform that processed more than four million transactions worth over $430 million, all conducted in cryptocurrency. Drug sales accounted for nearly $375 million of that volume, with the marketplace facilitating the sale of at least 13.3 kilograms of fentanyl, 447 kilograms of cocaine, and 103 kilograms of heroin. The site also traded in stolen account credentials, personal information, counterfeit currency, and hacking tools.
To obscure transaction origins, Hamilton and Pavey required all transactions to be made in cryptocurrency and encouraged users to route funds through tumbling and mixing services. They also allowed buyers to rate vendors on their ability to conceal drugs during shipping.
Hamilton has agreed to forfeit approximately 1,230 Bitcoin, 24.4 Ethereum, and three properties in Virginia. His co-creator Pavey, 41, of Ormond Beach, Florida, pleaded guilty last year to federal drug conspiracy charges and is scheduled to be sentenced later this month. Pavey agreed to forfeit about 1,584 Bitcoin, two boxes of 25-ounce gold bars, three cars, and two Florida properties.
Empire Market launched in February 2018 and became a leading darknet marketplace before going offline in August 2020 in what users described as a $30 million exit scam.
