Empire Market Co-Founder Sentenced to 40 Years

Empire Market Co-Creator Receives 40-Year Prison Term

A major chapter in darkweb history came to an end this week. Raheim Hamilton, the 30-year-old co-creator of the infamous Empire Market, was sentenced to 40 years in federal prison.

U.S. District Judge Steven C. Seeger handed down the sentence in Chicago. Alongside his prison term, Hamilton was hit with a $5 million fine after pleading guilty to a drug conspiracy charge.

Inside the $430 Million Darknet Empire

Empire Market was no ordinary website. Between 2018 and 2020, it operated as a massive black-market platform that processed over four million separate transactions.

In total, buyers and sellers exchanged more than $430 million worth of items. Almost every single one of these deals was paid for using cryptocurrency.

Illegal narcotics made up the vast majority of activity on the platform. Out of the $430 million overall volume, drug sales accounted for nearly $375 million.

Court documents reveal the staggering amount of illegal substances sold through the site. This included at least 13.3 kilograms of fentanyl, 447 kilograms of cocaine, and 103 kilograms of heroin.

Beyond illegal drugs, the marketplace was a hub for cybercrime materials. Users could easily purchase stolen account credentials, personal information, counterfeit money, and hacking tools.

How the Underground Platform Worked

Running a hidden online market requires strict rules. Hamilton and his co-creator made cryptocurrency mandatory for every transaction on the site.

To cover their tracks, the owners encouraged users to run their funds through mixing and tumbling services. These tools scramble transactions to make payment trails much harder for police to follow.

The platform even copied features from legal e-commerce sites. Buyers could rate vendors publicly on how skillfully they concealed illegal drugs inside shipping packages.

From AlphaBay's Shadow to a $30 Million Exit Scam

Empire Market opened for business in February 2018. It launched just months after federal agencies shut down AlphaBay, which was previously the largest darkweb bazaar.

According to blockchain analytics firm TRM Labs, Empire quickly stepped into that void. It soon grew to be the leading darknet market across Western countries.

However, the marketplace came to a sudden halt in August 2020. The platform went completely offline in what users and security researchers believed was a $30 million exit scam.

Surrendering Millions in Crypto, Gold, and Real Estate

Law enforcement ensured that the creators did not keep their illegal wealth. As part of his agreement, Hamilton surrendered a massive stash of digital and physical assets.

Hamilton forfeited around 1,230 Bitcoin (BTCBTC-0.27%) and 24.4 EthereumETH-2.14%. He also gave up three real estate properties located in Virginia.

His co-founder, 41-year-old Thomas Pavey of Ormond Beach, Florida, faces a similar fate. Pavey pleaded guilty to federal drug conspiracy charges last year and is scheduled for sentencing later this month.

Pavey agreed to forfeit an even bigger treasure chest. His forfeit includes roughly 1,584 BTC, two boxes containing 25-ounce gold bars, three cars, and two Florida properties.

Law Enforcement Focuses on Darkweb Crime

Hamilton's 40-year sentence shows how aggressively law enforcement targets illegal online markets. It follows another big case earlier this year against darknet operators.

In February, Incognito Market operator Rui-Siang Lin received a 30-year prison sentence. His platform had processed more than $105 million in drug sales before being closed down.

These cases show that while crypto offers digital privacy, open blockchains also leave paper trails that investigators can follow.

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