Co-Creator of Dark Web Marketplace Sentenced to 40 Years in Federal Prison

CHICAGO - A Virginia man who co-created and operated "Empire Market"-a dark web marketplace that enabled users to anonymously buy and sell illegal goods and services-has been sentenced to 40 years in federal prison.

RAHEIM HAMILTON co-owned and operated Empire Market from 2018 to 2020. During that time, the online market facilitated more than four million transactions between vendors and buyers valued at more than $430 million. The illegal products and services available on the site included controlled substances, compromised or stolen account credentials, stolen personally identifying information, counterfeit currency, and computer-hacking tools. Sales of controlled substances were the most prevalent activity, with net drug sales totaling nearly $375 million over the life of the site. The controlled substances sold on the market included approximately at least 13,314.23 grams of fentanyl, 446,683.15 grams of cocaine, 71,992.33 grams of methamphetamine, and 103,396.21 grams of heroin.

Hamilton and co-creator THOMAS PAVEY designed Empire Market to help its users avoid detection by law enforcement and to assist users with laundering money from the illicit transactions. Hamilton and Pavey established that all transactions on the site must be conducted using only cryptocurrency. They encouraged users to use tumbling and mixing services to conceal cryptocurrency transactions and utilize encryption while communicating on the site. They also allowed users to rate vendors based on how well the vendors concealed the drugs they shipped.

Hamilton, 30, of Suffolk, Va., pleaded guilty earlier this year in U.S. District Court in Chicago to a drug conspiracy charge. Hamilton agreed to forfeit certain ill-gotten proceeds, including, among things, approximately 1,230 bitcoin and 24.4 Ether, as well as three properties in Virginia.

On Monday, U.S. District Judge Steven C. Seeger sentenced Hamilton to 40 years in federal prison and fined him $5 million.

The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois; Ryan Whalen, Special Agent-in-Charge of the Chicago Field Office of the FBI; Nicholas Bucciarelli, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service; and Pete Gizas, Acting Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations. The government was represented by Assistant U.S. Attorney Ann Marie E. Ursini.

Pavey, 41, of Ormond Beach, Fla., pleaded guilty last year to a federal drug conspiracy charge and admitted his role in creating and operating Empire Market. Pavey agreed to forfeit certain ill-gotten proceeds, including, among things, approximately 1,584 bitcoin, two boxes containing 25-ounce gold bars, three automobiles, and two properties in Florida. Pavey is set to be sentenced before Judge Seeger later this month.