Raheim Hamilton, 30, of Suffolk, Virginia, was sentenced to 40 years in federal prison on October 5 in Chicago for his role as co-founder of Empire Market, a cryptocurrency-based dark web marketplace. U.S. District Judge Steven C. Seeger also imposed a $5 million fine and ordered Hamilton to forfeit digital assets and real property as part of a forfeiture agreement.
Hamilton pleaded guilty in January to a federal drug conspiracy charge. His forfeiture agreement covers approximately 1,230 bitcoin, 24.4 ether, and three Virginia properties. The U.S. Attorney's Office for the Northern District of Illinois announced the sentence and agreement on October 7.
Marketplace Operations and Scale
Empire Market operated from 2018 to 2020 and facilitated more than four million transactions between buyers and vendors. Federal authorities determined the platform processed more than $430 million in transactions, with net drug sales totaling nearly $375 million.
Hamilton and co-creator Thomas Pavey required all transactions on the platform to be conducted exclusively in cryptocurrency. The pair encouraged users to employ mixing services to obscure cryptocurrency transfers and encryption to protect communications. The platform also featured vendor ratings based on how effectively they concealed drugs in shipped packages.
Seized Assets and Drug Quantities
Investigators seized digital currencies valued at $75 million at the time of seizure, along with cash and precious metals. The Homeland Security Investigations agency, working with law enforcement partners, led the investigation.
According to the U.S. Department of Justice, drug sales on the platform included approximately 13.3 kilograms of fentanyl, 446.7 kilograms of cocaine, 72 kilograms of methamphetamine, and 103.4 kilograms of heroin. The marketplace also offered stolen credentials, personal identifying information, counterfeit currency, and computer-hacking tools. The service went offline for more than 36 hours by August 23, 2020.
Co-Founder's Pending Sentencing
Thomas Pavey, 41, of Ormond Beach, Florida, pleaded guilty last year to a federal drug conspiracy charge. His forfeiture agreement encompasses approximately 1,584 bitcoin, two boxes containing 25-ounce gold bars, three automobiles, and two Florida properties. Judge Seeger is scheduled to impose Pavey's sentence later in the month.
