Raheim Hamilton, co-creator of the dark web marketplace Empire Market, was sentenced to 40 years for a platform that handled $430M in illegal sales.
Raheim Hamilton, co-creator of the dark web marketplace Empire Market, has been sentenced to 40 years in federal prison for helping operate a platform that processed more than $430 million in illegal transactions.
The US Attorney’s Office for the Northern District of Illinois said Hamilton, 30, of Suffolk, Virginia, co-owned and operated Empire Market from 2018 to 2020. He pleaded guilty earlier this year in federal court in Chicago to a drug conspiracy charge.
Empire Market allowed vendors and buyers to trade illegal goods and services, including controlled substances, stolen account credentials, stolen personally identifiable information, counterfeit currency and hacking tools. Prosecutors said the site handled more than four million transactions during its operation.
According to the Justice Department, drug sales made up most of the marketplace’s activity, with net drug sales reaching nearly $375 million and including fentanyl, cocaine, methamphetamine and heroin.
Hamilton and co-creator Thomas Pavey designed the platform to help users avoid law enforcement detection. The platform used cryptocurrency to carry out transactions and users were encouraged to use tumbling and mixing services to conceal payments.
The site also supported encrypted communications and allowed buyers to rate vendors on how well they concealed drugs shipped through the mail. Empire Market operated from 2018 until 2020, when it disappeared from the dark web, prompting speculation at the time that it may have been an exit scam. The Justice Department’s sentencing announcement does not describe the site as having been seized by law enforcement.
US District Judge Steven C. Seeger sentenced Hamilton on Monday and imposed a $5 million fine. Hamilton also agreed to forfeit proceeds linked to the marketplace, including about 1,230 bitcoin, 24.4 Ether and three properties in Virginia.
On the other hand, Pavey, 41, of Ormond Beach, Florida, pleaded guilty last year to a federal drug conspiracy charge and admitted his role in creating and operating Empire Market. He agreed to forfeit about 1,584 bitcoin, two boxes containing 25-ounce gold bars, three vehicles, and two Florida properties. His sentencing is scheduled for later this month.
