Empire Market Co-Founder Sentenced to 40 Years
Empire Market co-founder Raheim Hamilton was sentenced to 40 years in federal prison and fined $5 million after pleading guilty. He will forfeit about 1,230 Bitcoin and 24.4 Ether.
Raheim Hamilton, 30, of Suffolk, Virginia, was sentenced after pleading guilty to a drug conspiracy charge. He agreed to forfeit about 1,230 Bitcoin, 24.4 Ether and three Virginia properties.
U.S. District Judge Steven C. Seeger imposed the sentence on Oct. 5 in Chicago. The U.S. Department of Justice announced it on Oct. 7.
Hamilton operated Empire Market from 2018 to 2020 with co-founder Thomas Pavey. The dark web marketplace handled more than four million transactions worth over $430 million and generated nearly $375 million in net drug sales, according to the Justice Department.
The site allowed users to buy and sell controlled substances, stolen account credentials, personally identifying information, counterfeit currency and computer-hacking tools. Court records cited sales of about 13,314 grams of fentanyl, 446,683 grams of cocaine, 71,992 grams of methamphetamine and 103,396 grams of heroin through the marketplace.
Empire Market required users to make transactions in cryptocurrency. Hamilton and Pavey encouraged customers to use cryptocurrency tumblers and mixers, which obscure transaction histories. They also urged users to encrypt communications and allowed customers to rate vendors based on how well they concealed drugs during shipping.
Pavey, 41, of Ormond Beach, Florida, pleaded guilty last year. He agreed to forfeit about 1,584 Bitcoin, two boxes of 25-ounce gold bars, three vehicles and two Florida properties. His sentencing is scheduled for later in October.
The forfeitures agreed to by Hamilton and Pavey total more than 2,800 Bitcoin. The case was announced by U.S. Attorney Andrew S. Boutros, the FBI, the U.S. Postal Inspection Service and Homeland Security Investigations.
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