A U.S. District Judge has sentenced Raheim Hamilton, 30, of Virginia, to 40 years in federal prison for his role co-creating and operating Empire Market, a dark web marketplace that facilitated drug trafficking, stolen data sales, and distribution of hacking tools between 2018 and 2020.
Hamilton pleaded guilty earlier this year to a drug conspiracy charge and agreed to forfeit more than $100 million in Bitcoin along with several Virginia properties. Judge Steven Seeger also imposed a $5 million fine on Monday.
From AlphaBay to Empire Market
Hamilton partnered with Thomas Pavey, who pleaded guilty last year and is scheduled for sentencing later this month. The pair originally collaborated on selling counterfeit U.S. currency through AlphaBay, a dark web marketplace that was shut down in 2017. According to the indictment, they launched Empire Market on February 1, 2018, organizing the site into categories such as “Fraud,” “Drugs and Chemicals,” “Counterfeit Items,” and “Software and Malware.”
Prosecutors said the platform processed more than 4 million transactions totaling roughly $430 million, with drug sales alone accounting for about $375 million, including fentanyl, cocaine, methamphetamine, and heroin. The indictment notes that counterfeit currency was sold directly to a law enforcement agent on the site in at least one instance.
Empire Market’s popularity grew in part due to built in encryption for user communications and support for cryptocurrency mixing services that allowed buyers and sellers to launder proceeds. The Justice Department previously said it seized $75 million in cryptocurrency during its investigation, along with cash and precious metals.
Site Vanished With User Funds
Empire Market abruptly went offline in the summer of 2020, with operators allegedly stealing an estimated $30 million in bitcoin that belonged to users at the time of the shutdown.
The sentencing is part of a broader Justice Department push to dismantle dark web infrastructure, with recent actions targeting marketplaces including BreachForums, BidenCash, and Archetyp. Separately, the DOJ announced a plea deal with a 42-year-old operator of Your Mule Cashout, a laundering platform that coordinated a network of 15,000 money mules to launder at least $10 million stolen from 750 bank accounts. That defendant, arrested in the Republic of Georgia, faces up to 50 years in prison.