Raheim Hamilton, a co-creator of the dark web marketplace Empire Market, has been sentenced to 40 years in federal prison for his role in operating the platform. The 30-year-old Virginia native pleaded guilty earlier this year to a drug conspiracy charge and was ordered by U.S. District Judge Steven Seeger to forfeit over $100 million in Bitcoin and several properties in Virginia, in addition to a $5 million fine.
Hamilton, in partnership with Thomas Pavey, owned and operated Empire Market from February 1, 2018, until its disappearance in the summer of 2020. The platform facilitated the sale of illicit goods including narcotics, stolen account credentials, fake currency, and hacking tools. Prosecutors stated that the site processed more than 4 million transactions, totaling approximately $430 million in volume, with drug sales accounting for about $375 million of that sum. Fentanyl, cocaine, methamphetamine, and heroin were among the drugs sold.
Empire Market gained popularity due to its use of encryption for communications and cryptocurrency washing services for money laundering. The indictment against Hamilton and Pavey revealed their prior collaboration on schemes to sell counterfeit U.S. currency on AlphaBay, another dark web site that was shut down in 2017. Following AlphaBay's demise, they launched Empire Market.
The marketplace was organized into categories such as “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” and “Software & Malware.” Prosecutors confirmed at least one instance where counterfeit U.S. currency was sold directly to a law enforcement agent on Empire Market.
The U.S. Justice Department previously announced the seizure of $75 million in cryptocurrency, along with cash and precious metals, during its investigation into the platform. Empire Market abruptly ceased operations in mid-2020, with its operators allegedly absconding with an estimated $30 million in Bitcoin from users.
Pavey, Hamilton's co-conspirator, pleaded guilty last year and is scheduled for sentencing later this month. The Justice Department has intensified its efforts against dark web platforms, targeting marketplaces like BreachForums, BidenCash, and Archetyp. In a separate but related development, the DOJ also announced a plea deal with a 42-year-old operator of Your Mule Cashout, a money laundering platform that processed at least $10 million stolen from 750 bank accounts by hackers. This individual, arrested in the Republic of Georgia, faces up to 50 years in prison.
