Empire Market Operator Sentenced to 40 Years for $430 Million Dark Web Empire

Four Decades Behind Bars

Raheim Hamilton, a 30-year-old man from Suffolk, Virginia, has been sentenced to 40 years in federal prison for creating and operating Empire Market, one of the largest illegal marketplaces on the dark web. According to the US Department of Justice, Hamilton co-owned and operated the platform from February 2018 to August 2020.

A Marketplace Built on Illicit Trade

Prosecutors said Empire Market facilitated more than 4 million transactions between vendors and buyers valued at over $430 million. About $375 million of that total came from the sale of illegal drugs, including cocaine, heroin, methamphetamine, fentanyl, LSD, and other controlled substances. Vendors also offered stolen financial information, compromised account credentials, personal data, counterfeit goods, and cybercrime tools such as hacking tools, malicious software, and other malware-related products.

Filling the Void After AlphaBay and Hansa

The marketplace emerged after the 2017 takedowns of major dark web marketplaces AlphaBay and Hansa, in an attempt to fill the gap left by those operations. Not long after, Empire Market became one of the largest marketplaces on the dark web. The Justice Department claims that Hamilton and co-creator Thomas Pavey built the platform to help users avoid detection by law enforcement and assist them in laundering their illicit proceeds. To do this, Empire Market offered tumbling and mixing services to conceal cryptocurrency transactions and utilized encryption while communicating on the website. To boost sales, buyers were allowed to rate vendors based on how well they concealed the drugs they shipped.

Forfeitures and a Co-Conspirator

Earlier this year, Hamilton pleaded guilty in the US District Court in Chicago to a drug conspiracy charge. He agreed to forfeit ill-gotten proceeds, including 1,230 bitcoin, 24.4 ether, and 3 properties in Virginia. On top of his prison term, he has to pay a $5 million fine. His 40-year-old co-conspirator, Thomas Pavey, pleaded guilty to a federal drug conspiracy charge and admitted his role in creating and operating Empire Market. Pavey agreed to give up 1,584 bitcoin, 2 boxes containing 25-ounce gold bars, 3 cars, and 2 properties in Florida. He will hear his sentencing later this month.

Sources: Cybernews