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ZEC $1,221 Dark web market founder gets 40 years and forfeits 1,230 Bitcoin
Raheim Hamilton was sentenced in Chicago over Empire Market, a crypto-only darknet bazaar that handled more than $430 million in trades.
Key takeaways
- 40 years in prison. Hamilton received a 40-year federal prison sentence in Chicago on Oct. 5.
- 1,230 BTC forfeited. He also agreed to give up about 1,230 BTC, 24.4 ETH and a $5 million fine.
- $430 million in trades. Federal authorities said Empire Market carried more than four million transactions worth more than $430 million.
What happened
Raheim Hamilton, a co-creator of the darknet marketplace Empire Market, was sentenced to 40 years in federal prison in Chicago on Oct. 5, the U.S. Attorney's Office for the Northern District of Illinois said. U.S. District Judge Steven C. Seeger also fined him $5 million. Hamilton agreed to forfeit about 1,230 BTC, 24.4 ETH and three Virginia properties.
Federal authorities said Empire Market ran from 2018 to 2020 and carried more than four million transactions worth more than $430 million. Drug sales came to nearly $375 million and included at least 13.3 kilograms of fentanyl, 447 kilograms of cocaine and 103 kilograms of heroin. The site also sold stolen account credentials, personal data, counterfeit currency and hacking tools. The operators required all payments in cryptocurrency and pushed users toward mixing services.
Why it matters
The case links a crypto-only marketplace to drug trafficking charges and to a large forfeiture of coins. Investigators seized digital currencies valued at $75 million at the time of seizure in the Empire Market case. Other darknet prosecutions have produced long terms: Rui-Siang Lin received 30 years over Incognito Market, which handled more than $105 million in narcotics sales, and Larry Dean Harmon received three years for running the bitcoin mixer Helix, with a surrender order covering assets worth more than $400 million.
What the data shows
- Forfeited by Hamilton: about 1,230 BTC, 24.4 ETH and three Virginia properties.
- Fine: $5 million.
- Marketplace volume: more than $430 million across more than four million transactions.
- Drug sales: nearly $375 million.
- Seized digital currencies: $75 million at the time of seizure.
- Forfeited by Pavey: about 1,584 BTC, two boxes of 25-ounce gold bars, three cars and two Florida properties.
Background
- Empire Market launched in February 2018, months after the AlphaBay takedown, and became the leader of the Western darknet market ecosystem, according to blockchain analytics firm TRM Labs.
- The site went offline in August 2020 in what users believed was a $30 million exit scam.
- Federal authorities detailed charges against the operators in June 2024, and Hamilton pleaded guilty in January to a federal drug conspiracy charge.
What is still unclear
- The reports give different cocaine figures: 447 kilograms in one and 446.7 kilograms in the other.
- Hamilton's plea is described as taking place in January, with no year stated.
- Pavey's sentencing is expected later this month, but the reports give no date.
Questions readers ask
What is Empire Market?
It was a darknet marketplace that required cryptocurrency for every payment. Federal authorities said it ran from 2018 to 2020 and handled more than four million transactions worth more than $430 million.
How much bitcoin did Raheim Hamilton forfeit?
Hamilton agreed to give up about 1,230 BTC and 24.4 ETH, along with three Virginia properties. A judge also fined him $5 million.
What happens to Thomas Pavey next?
Pavey, 41, of Ormond Beach, Florida, pleaded guilty last year to a federal drug conspiracy charge. He agreed to forfeit about 1,584 BTC plus gold bars, three cars and two Florida properties, and is due to be sentenced later this month.
How much did drug sales total on Empire Market?
Drug sales totaled nearly $375 million. The U.S. Attorney's Office said the offerings included at least 13.3 kilograms of fentanyl, 447 kilograms of cocaine and 103 kilograms of heroin.
