A US federal judge has sentenced Raheim Hamilton, one of the founders of the notorious Empire Market dark web marketplace, to 40 years in prison for his role in operating a platform that facilitated hundreds of millions of dollars in illegal sales.
Hamilton, a 30-year-old resident of Suffolk, Virginia, received the sentence on October 5 in Chicago. The court also imposed a $5 million fine after he pleaded guilty earlier this year to a federal drug conspiracy charge.
Empire Market operated from 2018 until 2020, becoming one of the largest underground marketplaces for illegal goods and services. According to US prosecutors, the platform processed more than four million transactions worth over $430 million during its operation.
Although the marketplace offered stolen account credentials, personal information, counterfeit currency, and hacking tools, drug trafficking generated most of its business. Authorities calculated that illegal drug sales alone accounted for nearly $375 million.
The platform allowed buyers and sellers to conduct transactions anonymously using cryptocurrency. Hamilton and fellow operator Thomas Pavey also encouraged users to conceal their financial activity through cryptocurrency mixing services and encrypted communications.
Empire Market functioned much like a conventional online shopping platform, with vendor listings, customer reviews, and a system for resolving disputes. However, its operators designed these features to support illegal transactions while making it more difficult for authorities to identify participants.
Investigators documented extensive drug trafficking activity, including sales involving fentanyl, cocaine, heroin, and methamphetamine. Federal agents also conducted undercover purchases from vendors operating on the marketplace before its shutdown in 2020.
Hamilton agreed to surrender substantial assets obtained through the operation, including approximately 1,230 Bitcoin, 24.4 Ether and three properties in Virginia. The forfeitures formed part of his guilty plea agreement.
His co-founder, Thomas Pavey, also pleaded guilty to a federal drug conspiracy charge. Pavey agreed to forfeit approximately 1,584 Bitcoin, gold bars, vehicles, and properties in Florida.
The two operators previously participated in illegal activities on AlphaBay, another major dark web marketplace that authorities shut down in 2017. Empire Market subsequently adopted a similar model and attracted a large criminal customer base.
Pavey is scheduled to be sentenced later in October, bringing the prosecution of Empire Market’s two principal operators closer to its conclusion.