A federal judge has sentenced Raheim Hamilton, 30, to 40 years in prison for his role in running Empire Market, a dark web marketplace used to sell illegal drugs and cybercrime-related goods. Hamilton was also fined $5 million.
Hamilton pleaded guilty to drug conspiracy charges and agreed to surrender more than $100 million in bitcoin and several Virginia properties. Prosecutors said he and Thomas Pavey operated the marketplace from 2018 until it disappeared in 2020.
Empire Market facilitated more than 4 million transactions worth about $430 million, according to prosecutors. Around $375 million involved drug sales, including fentanyl, cocaine, methamphetamine and heroin. The site also offered stolen account details, documents, counterfeit money and hacking tools.
The marketplace used encrypted communications and cryptocurrency-mixing services that could help users conceal proceeds. Authorities said an undercover law enforcement agent once purchased counterfeit U.S. currency through the site.
Hamilton and Pavey had previously worked together selling counterfeit money on AlphaBay, which was shut down in 2017. They launched Empire Market the following year. Pavey has pleaded guilty and is due to be sentenced later this month.
Investigators seized approximately $75 million in cryptocurrency, along with cash and precious metals. After Empire Market went offline, its operators were believed to have taken roughly $30 million in bitcoin from users.
The Justice Department has also pursued other online marketplaces, including BreachForums, BidenCash and Archetyp.
In a separate case announced Thursday, a 42-year-old man pleaded guilty to operating Your Mule Cashout. Prosecutors said the service relied on 15,000 money mules to launder at least $10 million stolen from 750 bank accounts. He was arrested in Georgia, the country, and faces a potential sentence of up to 50 years.