Raheim Hamilton, co-founder of dark web marketplace Empire Market, has been sentenced to 40 years in a US prison for crimes.
What was Empire Market and how did it operate?
Raheim Hamilton, who operated under the online names “Sydney” and “ZeroAngel”, helped establish Empire Market, an illegal online marketplace that operated between 2018 and 2020. According to the US Attorney’s Office, the platform processed more than four million transactions worth approximately ₹4,160 crore before shutting down.
The marketplace allowed users to anonymously purchase illegal drugs, stolen account credentials, personal information, counterfeit currency and computer-hacking tools. It operated through the Tor network, which enabled access beyond conventional internet browsers.
Hamilton operated the platform alongside Thomas Pavey, 41, of Ormond Beach, Florida, who used the online name “Dopenugget”. Prosecutors said Empire Market was modelled and advertised as a clone of AlphaBay, another dark web marketplace where Hamilton had previously sold products between June 2016 and July 2017.
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How extensive were the illegal transactions?
At its peak in August 2020, Empire Market had approximately 1.68 million unique registered users, including more than 5,000 vendors and nearly 360,000 buyers. Drug sales accounted for nearly ₹3,628 crore of the marketplace’s transactions, with more than 166,000 listings involving controlled substances.
According to the US Department of Justice, the platform facilitated sales involving fentanyl, cocaine, methamphetamine and heroin. All transactions were required to use cryptocurrency. Prosecutors said Hamilton and Pavey encouraged users to conceal cryptocurrency transfers and communicate through encryption.
The marketplace also operated a vendor-rating system and employed moderators to resolve disputes between buyers and sellers. Hamilton supervised approximately five moderators and personally handled some disputes.
How did investigators uncover the operation?
Law enforcement agents conducted multiple undercover purchases between April 2019 and May 2020, acquiring at least 143.5 grams of methamphetamine and 105.4 grams of heroin.
Investigators also intercepted a package containing 443.5 grams of methamphetamine ordered through Empire Market. The platform abruptly closed in 2020 following repeated distributed denial-of-service attacks accompanied by extortion demands. Its closure prompted allegations of an exit scam because users were unable to withdraw money held in escrow accounts.
Hamilton and Pavey were charged in July 2024. Authorities said they had already seized cryptocurrency worth approximately ₹726 crore during the investigation.
What penalties and asset forfeitures followed?
Hamilton received a 40-year prison sentence and a ₹48.37 crore financial penalty. He also agreed to forfeit proceeds including approximately 1,230 Bitcoin, valued at roughly ₹967 crore, 24.4 Ether worth approximately ₹58 lakh and three properties in Virginia.
Pavey, who pleaded guilty last year, agreed to forfeit approximately 1,584 Bitcoin valued at around ₹1,258 crore, two boxes containing 25-ounce gold bars, three automobiles and two properties in Florida.
The420 Insight
The Empire Market case demonstrates how cryptocurrency payments, encrypted communication and anonymous marketplaces can support extensive illegal transactions. The investigation also shows the importance of tracing digital financial assets and using undercover operations to establish evidence against those managing such platforms.
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