Empire Market co-founder gets 40 years in prison and forfeits 1,230 bitcoin, 24.4 ether and three homes

Raheim Hamilton, co-founder of the dark web marketplace Empire Market, was sentenced to 40 years in federal prison and agreed to forfeit about 1,230 bitcoin, 24.4 ether and three Virginia properties. U.S. District Judge Steven C. Seeger imposed the sentence in Chicago on October 5, and prosecutors announced it on October 7.

Crypto forfeiture follows a $5 million fine and prison sentence

Hamilton’s sentence represents a significant penalty for his role in the operation of Empire Market. In addition to the 40-year prison term and $5 million fine, his agreement requires him to relinquish approximately 1,230 bitcoin, 24.4 ether and three properties located in Virginia.

The U.S. Department of Justice detailed the sentence and agreement in its official announcement. The case originated from an investigation into a marketplace that prosecutors said enabled criminal transactions on an international scale.

Federal authorities publicly detailed charges against the marketplace’s operators in June 2024. Investigators also seized digital assets valued at approximately $75 million at the time of seizure, alongside cash and precious metals. The value of cryptocurrency can fluctuate significantly, meaning the amount recovered or ultimately forfeited may differ from its value at the time of seizure.

The crypto forfeiture arrangement is intended to deprive Hamilton of assets covered by the agreement, in addition to the criminal penalties imposed by the court. The combination of imprisonment, a substantial fine and the surrender of digital assets and real estate illustrates the multiple enforcement mechanisms available to authorities pursuing alleged proceeds of crime.

The case also demonstrates the challenges investigators face when tracing financial activity conducted through cryptocurrency-based platforms. Although digital assets can be transferred across borders, blockchain transaction records may provide investigators with information that can be examined alongside other evidence.

How Empire Market used cryptocurrency to facilitate illegal sales

Empire Market required buyers and vendors to use cryptocurrency for transactions, according to the Justice Department. Investigators said Hamilton and Pavey also encouraged users to adopt tools intended to make their activities more difficult for law enforcement to trace.

The Department of Justice stated: “Hamilton and Pavey established that all transactions on the site must be conducted using only cryptocurrency.”

The marketplace also promoted the use of cryptocurrency mixing services and encrypted communications. Mixing services are designed to make it more difficult to associate particular cryptocurrency transfers with their original sources, while encryption can help conceal communications between users.

Empire Market’s vendor-rating system reportedly allowed customers to assess how effectively sellers concealed drugs inside shipped packages. Such features helped the platform operate as a marketplace for prohibited goods while attempting to reduce the risk of detection.

According to the case details, net drug sales approached $375 million. The substances sold included approximately 13.3 kilograms of fentanyl, 446.7 kilograms of cocaine, 72 kilograms of methamphetamine and 103.4 kilograms of heroin.

Other items reportedly available through the marketplace included stolen account credentials, personally identifying information, counterfeit currency and computer-hacking tools. The breadth of the listings demonstrated that the platform’s activities extended beyond narcotics distribution.

Homeland Security Investigations led the investigation with assistance from law enforcement partners. Further details about the investigation and allegations against the operators are available in the U.S. Immigration and Customs Enforcement announcement.

By August 23, 2020, Empire Market had reportedly been offline for more than 36 hours. The shutdown followed a period in which the service had facilitated millions of transactions, although the disappearance of a platform does not necessarily mean that all assets connected to its operators have been recovered.

Pavey faces a separate penalty and additional asset surrender

Hamilton’s co-founder, Thomas Pavey, 41, of Ormond Beach, Florida, also pleaded guilty to a federal drug conspiracy charge after admitting his role in creating and operating Empire Market.

Pavey’s agreement covers approximately 1,584 bitcoin, two boxes containing 25-ounce gold bars, three automobiles and two properties in Florida. His punishment was scheduled to be imposed by Judge Seeger later in October 2026, according to the supplied report.

The crypto forfeiture arrangements for both co-founders involve substantial digital holdings, but their respective agreements cover different quantities of cryptocurrency and other assets. Pavey’s case remains separate from Hamilton’s sentencing, and the scheduled court proceeding will determine the punishment imposed on him.

The case illustrates how investigators and prosecutors can pursue multiple individuals involved in the same alleged criminal enterprise while seeking to recover assets associated with its operation. The inclusion of cryptocurrency, property, vehicles and precious metals also reflects the range of holdings that may be targeted in financial investigations.

The crypto forfeiture proceedings are part of a broader pattern of enforcement against services accused of concealing or facilitating illicit financial activity. However, the forfeiture of particular assets depends on the terms of the relevant legal agreement and applicable court proceedings.

Previous crypto forfeiture cases show the scale of asset recovery

The Empire Market prosecution is not the only case involving substantial asset recovery from a cryptocurrency-related operation. In November 2024, Larry Dean Harmon, the operator of the bitcoin mixing service Helix, received a three-year prison sentence. The court also ordered the forfeiture of seized tokens, real estate and monetary assets valued at more than $400 million.

The Helix case provides another example of authorities combining criminal punishment with financial recovery in investigations involving cryptocurrency services. Mixing services have attracted law enforcement scrutiny because they can complicate efforts to trace the movement of digital assets, particularly when investigators suspect that transactions are linked to criminal proceeds.

Nevertheless, the circumstances and penalties differ between cases. The Helix proceedings concerned a bitcoin mixing service, while the Empire Market prosecution involved an online marketplace that prosecutors said facilitated drug sales and transactions involving other illegal goods.

For Hamilton, the immediate consequences include a lengthy federal prison sentence, a $5 million fine and the agreed surrender of cryptocurrency and real estate. Pavey faces his own sentencing proceeding and has agreed to surrender a separate collection of assets.

The crypto forfeiture agreements also highlight an important distinction in cryptocurrency enforcement: identifying digital assets linked to suspected criminal activity is only one part of the process. Authorities must also establish the legal basis for seizure or forfeiture and follow the applicable court procedures.

As the Empire Market case moves forward, the outcome underscores the continuing focus of federal investigators on darknet marketplaces and the financial networks that support them. The crypto forfeiture agreements against the two co-founders, together with Hamilton’s prison sentence and fine, represent a major enforcement action against a platform that prosecutors linked to hundreds of millions of dollars in illegal transactions.