Empire Market Co-founder Sentenced to 40 Years in Federal Prison
Raheim Hamilton, 30, a Virginia native and co-creator of the notorious dark web marketplace Empire Market, was sentenced this week to 40 years in federal prison by U.S. District Judge Steven Seeger. The sentence followed his guilty plea earlier this year to a drug conspiracy charge, as part of a plea agreement that required him to forfeit more than $100 million in Bitcoin and several properties located in Virginia. In addition to the prison term, Judge Seeger imposed a $5 million fine.
Hamilton partnered with Thomas Pavey to launch Empire Market on February 1, 2018, after the shutdown of the AlphaBay dark web marketplace in 2017. The two had initially collaborated on schemes to sell counterfeit U.S. currency on AlphaBay before transitioning to build their own platform. Empire Market quickly became one of the most active hubs for illicit commerce on the dark web, operating until its sudden disappearance in the summer of 2020.
Platform Facilitated Over $430 Million in Illicit Transactions
According to prosecutors, Empire Market hosted more than 4 million transactions during its operation, generating a total sales volume of approximately $430 million. The vast majority of this activity — around $375 million — involved the sale of narcotics, including fentanyl, cocaine, methamphetamine, and heroin. The platform also enabled the trade of stolen account credentials, forged documents, counterfeit currency, and hacking tools, organized under categories such as "Fraud," "Drugs & Chemicals," "Counterfeit Items," and "Software & Malware."
The indictment revealed that in at least one documented case, counterfeit U.S. currency was sold directly to a law enforcement agent operating undercover on the Empire Market platform. This detail underscored the brazenness of the criminals’ operations and the platform’s role in enabling fraud at scale.
Cryptocurrency Mixing and Money Laundering Enabled Criminal Activity
Empire Market’s popularity was bolstered by its integration of encryption services that allowed users to communicate securely and anonymously. Additionally, the platform facilitated money laundering through cryptocurrency mixers — services designed to obscure the origins of digital assets by pooling and redistributing funds. These tools helped vendors convert proceeds from illegal sales into seemingly untraceable Bitcoin.
As part of the investigation, the U.S. Department of Justice seized approximately $75 million worth of cryptocurrency linked to Empire Market operations, along with physical cash and precious metals. Despite these seizures, prosecutors alleged that when the platform shut down abruptly in mid-2020, its operators stole an estimated $30 million in Bitcoin from user wallets — an exit scam that left thousands of vendors and buyers without recourse.
Broader DOJ Campaign Against Darknet Marketplaces
Hamilton’s sentencing is part of a broader initiative by the U.S. Department of Justice to dismantle dark web infrastructure used for cybercrime. Officials have increasingly targeted marketplaces that enable the sale of drugs, stolen data, and illicit services. In recent years, the DOJ has taken action against platforms including BreachForums, BidenCash, and Archetyp.
Just days before Hamilton’s sentencing, the DOJ announced a plea agreement with a 42-year-old individual who operated "Your Mule Cashout," a sophisticated money laundering network that employed over 15,000 money mules and internet infrastructure to conceal at least $10 million in funds stolen from 750 bank accounts by hackers. The defendant was arrested in the Republic of Georgia before pleading guilty and now faces up to 50 years in prison.
Thomas Pavey, Hamilton’s co-defendant and co-operator of Empire Market, pleaded guilty to related charges last year and is scheduled to be sentenced later this month. His case remains pending as prosecutors continue to emphasize the severity of crimes facilitated through dark web marketplaces.
Source: The Record