Dark Web Operator Sentenced to 40 Years, Forfeits $101 Million in Bitcoin

Raheim Hamilton, one of the founders of the dark web marketplace Empire Market, was sentenced to 40 years in prison in the United States and agreed to forfeit 1,230 Bitcoin worth approximately $101 million.

According to a report by CoinDesk citing the U.S. Attorney’s Office for the Northern District of Illinois, a federal court in Chicago handed down the sentence on Monday. Hamilton, 30, was also fined $5 million.

In addition to the Bitcoin, Hamilton agreed to give up his rights to approximately 24.4 Ethereum (ETH) worth about $60,000 and three properties. The case therefore also involves the forfeiture of crypto assets and real estate, in addition to the lengthy prison sentence.

Partner Had Also Given Up 1,584 Bitcoin

Thomas Pavey, who co-founded and operated Empire Market with Hamilton, pleaded guilty last year to a conspiracy charge related to federal drug offenses. Pavey gave up 1,584 Bitcoin, as well as gold bars, three cars and his rights to two properties in Florida. Pavey is expected to be sentenced later this month.

The amount of Bitcoin the two operators agreed to forfeit totals 2,814 BTC.

Marketplace Activity Exceeded $430 Million

According to prosecutors, Empire Market operated between 2018 and 2020 and facilitated millions of drug transactions. The site’s total activity exceeded $430 million, with drug sales accounting for approximately $375 million. Stolen account credentials, personal data, counterfeit money and hacking tools were also sold on the marketplace.

The U.S. Department of Justice said customers were required to pay with cryptocurrency and were encouraged to use mixing services to conceal the trail of fund movements.