Dark Web Operator Gets 40 Years, Forfeits $101M Bitcoin

Major Prison Sentence for Dark Web Empire Co-Creator

Federal authorities handed down a massive sentence to a dark web marketplace operator. Raheim Hamilton, the 30-year-old co-creator of Empire Market, will serve 40 years in federal prison.

A federal judge in Chicago sentenced Hamilton on Monday. Along with prison time, the court ordered the Virginia native to pay a $5 million fine.

As part of his deal, Hamilton forfeited 1,230 bitcoinBTC-0.61%. That crypto stash is worth roughly $101 million today.

Inside Empire Market's Operations

Hamilton and his partner ran Empire Market between 2018 and 2020. During those two years, the platform processed over 4 million transactions.

Total activity on the site topped $430 million. Illicit drug sales made up the vast majority of those total sales.

According to federal prosecutors, drug sales accounted for nearly $375 million of total activity. The site also facilitated transactions for other illicit items:

• Stolen account credentials
• Personal identifying data
• Counterfeit currency
• Hacking tools

Partner Pleads Guilty and Forfeits Millions

Hamilton did not operate the platform alone. His co-conspirator, 41-year-old Thomas Pavey of Ormond Beach, Florida, pleaded guilty last year.

Pavey admitted to his role in creating Empire Market under a federal drug conspiracy charge. His sentencing takes place later this month.

Ahead of his sentencing, Pavey agreed to surrender a substantial collection of assets:

• 1,584 bitcoin
• Two boxes containing 25-ounce gold bars
• Three automobiles
• Two real estate properties in Florida

Hamilton also surrendered extra assets beyond his bitcoin holdings. He forfeited 24.4 etherETH-2.68%, worth about $60,000, plus three real estate properties.

How Crypto and Mixing Services Were Used

Empire Market required all buyers and sellers to conduct transactions using cryptocurrency. The founders explicitly encouraged users to send funds through mixing services.

Crypto mixing services pool digital coins together. Criminals frequently use them to obscure payment origins and hide illicit money flows.

Part of a Broader Crackdown on Darknet Crime

This sentencing reflects ongoing federal efforts targeting criminal activities across dark web platforms.

In February, Ruis-Sian Lin, the alleged operator of Incognito Market, received a 30-year sentence in U.S. federal prison.

One month earlier, federal agencies seized $400 million in crypto, cash, and real estate connected to Helix.

The Department of Justice noted that Helix helped criminals launder at least 354,468 bitcoin. That amount carries a current valuation of nearly $29 billion.