- Empire Market co-founder received 40 years in prison and a $5 million fine.
- Hamilton agreed to forfeit about 1,230 Bitcoin, 24.4 Ether, and three properties.
- Empire Market processed over $430 million, with nearly $375 million in drug sales.
Empire Market co-founder Raheim Hamilton has been sentenced to 40 years in federal prison and fined $5 million after pleading guilty to a drug conspiracy charge. The 30-year-old Suffolk, Virginia, resident helped operate a darknet marketplace that processed more than $430 million in transactions.
His forfeiture agreement includes approximately 1,230 Bitcoin, 24.4 Ether and three Virginia properties.
According to the Justice Department, U.S. District Judge Steven C. Seeger imposed the sentence in Chicago. Hamilton pleaded guilty earlier this year, while fellow co-founder Thomas Pavey awaits sentencing later this month.
Drug Sales Accounted for Nearly $375 Million
Hamilton and Pavey co-owned and operated Empire Market from 2018 to 2020. During that period, vendors and buyers completed more than four million transactions through the platform.
Controlled substances accounted for the marketplace’s most prevalent activity, generating nearly $375 million in net sales over its lifetime.
Beyond drugs, vendors offered fake or stolen account credentials, stolen personally identifying information, counterfeit currency, and computer-hacking tools. The marketplace enabled users to buy and sell these products and services anonymously.
Its vendor-rating system also extended to shipping practices. Buyers could assess how effectively sellers concealed drugs in their packages.
Cryptocurrency Payments and Concealment Measures
The platform’s payment rules required every transaction to use cryptocurrency. According to the Justice Department, Hamilton and Pavey created the Empire Market to help users avoid detection by law enforcement and launder proceeds from illicit transactions.
They encouraged buyers and sellers to use cryptocurrency tumbling and mixing services to conceal transactions. They also urged users to communicate on the site using encryption.
Co-Founder Thomas Pavey Awaits Sentencing
Pavey, 41, of Ormond Beach, Florida, pleaded guilty last year to a federal drug conspiracy charge and admitted helping create and operate Empire Market. His forfeiture agreement includes approximately 1,584 Bitcoin, two boxes containing 25-ounce gold bars, three automobiles, and two Florida properties. Judge Seeger is scheduled to sentence him later this month.
The Justice Department announced Hamilton’s sentence alongside officials from the FBI, U.S. Postal Inspection Service and Homeland Security Investigations.
Related: Chinese National Gets 30-Month Sentence for Crypto Scams
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