Raheim Hamilton, the Virginia man who co-created and operated the dark web marketplace Empire Market, was sentenced to 40 years in federal prison and fined $5 million, the U.S. Department of Justice announced on October 7. As part of his guilty plea, Hamilton agreed to forfeit approximately 1,230 Bitcoin and 24.4 Ether, along with three properties in Virginia.
Hamilton, 30, of Suffolk, ran Empire Market from 2018 to 2020 alongside co-creator Thomas Pavey. The marketplace handled more than four million transactions worth over $430 million and generated nearly $375 million in net drug sales, according to the DOJ’s sentencing announcement.
A Crypto-Only Marketplace Built for Concealment
Empire Market let buyers and sellers trade controlled substances, stolen account credentials, stolen personally identifying information, counterfeit currency, and computer-hacking tools. Court records cited roughly 13,314 grams of fentanyl, 446,683 grams of cocaine, 71,992 grams of methamphetamine, and 103,396 grams of heroin sold through the platform.
Every transaction on the site had to be settled in cryptocurrency. Hamilton and Pavey also encouraged users to run funds through tumbling and mixing services and to encrypt their communications, while letting vendors be rated on how well they concealed the drugs they shipped.
The Sentence and the Forfeiture
U.S. District Judge Steven C. Seeger imposed the sentence on Monday, October 5, in Chicago. Hamilton had pleaded guilty earlier this year to a drug conspiracy charge. Pavey, 41, of Ormond Beach, Florida, pleaded guilty last year and agreed to forfeit roughly 1,584 Bitcoin, two boxes of 25-ounce gold bars, three automobiles, and two Florida properties; he is scheduled to be sentenced later this month.
The case follows a run of high-profile crypto-linked sentencings, including the 78-month term handed to the so-called “Crypto Godfather” Adam Iza and the industry ban imposed on Celsius founder Alex Mashinsky.
What the Forfeiture Signals
The combined forfeiture of more than 2,800 Bitcoin between Hamilton and Pavey underscores how asset seizure now sits at the center of dark web prosecutions. The announcement was attributed to U.S. Attorney Andrew S. Boutros, the FBI, the U.S. Postal Inspection Service, and Homeland Security Investigations.
The case also highlights tumbling and mixing services as a recurring enforcement target, as investigators trace crypto-denominated drug proceeds across blockchains. The scale of any further seizures remains to be seen as Pavey’s sentencing approaches.
