A federal judge has sentenced Empire Market co-creator Raheim Hamilton to 40 years in prison and imposed a $5 million fine for operating a dark-web market that used cryptocurrency for all transactions.
Hamilton agreed to forfeit approximately 1,230 BTC, 24.4 ETH and three Virginia properties. The Bitcoin was valued near $101 million when the case was announced, according to the Justice Department’s October 7 statement.
Prosecutors said Empire Market facilitated more than four million transactions worth over $430 million between 2018 and 2020. Drug sales accounted for almost $375 million, and the platform also sold stolen credentials, identity information, counterfeit currency and hacking tools.
Hamilton’s co-conspirator, Thomas Pavey, previously forfeited 1,584 BTC and other assets after pleading guilty to a federal drug conspiracy charge.
TOKEN RECON ASSESSMENT
The case demonstrates how cryptocurrency seizure can produce enforcement recoveries far larger than the original operating value of an illicit market. The remaining question is disposition: forfeiture transfers ownership to the government, but court and agency records will determine when and how the assets are liquidated or retained.
Sources
U.S. Department of Justice: Empire Market co-creator sentenced to 40 years
