A federal judge in Chicago has sentenced Raheim Hamilton, a 30-year-old from Suffolk, Virginia who founded the Empire Market darknet platform, to 40 years in prison. The decades-long sentence is accompanied by an order to pay a $5 million fine. The judge also ordered the comprehensive forfeiture of all crypto assets and real estate holdings in Hamilton’s possession.
Under the sentencing agreement, Hamilton must forfeit his 1,230 Bitcoin to the United States government - a digital asset surrender valued at roughly $101 million. The government not only seized the Bitcoin hoard, but also confiscated the remainder of his treasury consisting of 24.4 Ether worth $60,000 along with three real estate properties.
Four Million Narcotics Transactions
According to prosecutors’ records, Empire Market had a relatively brief run from 2018 to 2020. Despite lasting only two years, the platform facilitated the illicit movement of goods on a massive scale. Users completed more than 4 million transactions involving the distribution of narcotics and various other contraband.
Cash transactions were entirely non-existent. Empire Market operators required all customers to process payments using cryptocurrencies to preserve anonymity. Hamilton and his network also urged customers to utilize coin mixing services, a tactic designed to obscure transaction trails from law enforcement radar. The total value processed under their watch exceeded $430 million.
The Co-Conspirator’s Forfeited Assets
The collapse of Empire Market did not bring down Hamilton alone. He partnered with Thomas Pavey, a 41-year-old co-conspirator who pleaded guilty during court proceedings last year. Pavey is now awaiting his sentencing hearing scheduled for later this month.
Pavey was also bound by an agreement to forfeit proceeds from their darknet operations. He surrendered a coin stash that surpassed Hamilton’s, totaling 1,584 Bitcoin. The physical assets seized were also substantial: two boxes containing 25 ounces of gold bars, three vehicles, and two properties in Florida.
Hamilton’s sentence extends the track record of United States law enforcement cracking down on dark web operators. In February, Rui-Siang Lin, the operator behind Incognito Market, was also sentenced to 30 years in federal prison. The anonymous coins once used to mask illicit trails have now ended up in government hands, while their founders head behind bars.
Reported via CoinDesk.
Read also: Unclaimed Vault on Base Drained for $6M - Anyone on Whitelist Could Empty Assets Without Collateral
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
