> US Sentences Empire Market Co-Creator Over $430 Million Criminal Marketplace

Empire Market co-creator Raheim Hamilton was sentenced to 40 years in prison for running a dark web marketplace linked to $430 million in illegal trades. The case against Empire Market shows how a dark web marketplace can become a major criminal business, bringing together drug trafficking, stolen credentials, personal data and hacking tools. “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.” reads the press release published by DoJ. “RAHEIM HAMILTON co-owned and operated Empire Market from 2018 to 2020. “ On October 7, 2026, the U.S. Department of Justice announced that Raheim Hamilton, a 30-year-old man from Virginia who co-created and operated the marketplace, had been sentenced to 40 years in federal prison and fined $5 million. His case also highlights a point worth remembering: hiding behind cryptocurrency, encryption and the dark web doesn’t guarantee that law enforcement won’t identify the people running the operation. Hamilton co-owned and operated Empire Market with Thomas Pavey between 2018 and 2020. In June 2024, two men, Thomas Pavey (aka “Dopenugget”) and Raheim Hamilton (aka “Sydney” and “Zero Angel”), were charged in federal court in Chicago for operating the dark web marketplace “Empire Market” from 2018 to 2020. According to the indictment, the duo was previously involved in selling counterfeit U.S. currency on AlphaBay before starting Empire Market. The site handled more than four million transactions worth over $430 million, giving buyers and sellers a way to trade illegal goods and services anonymously. The marketplace offered controlled drugs, stolen or compromised account credentials, personal information, counterfeit currency and computer-hacking tools. The dark web marketplace Empire Market featured multiple categories of illicit goods such as illegal drugs, counterfeit items, Software & Malware, and credit card numbers. The platform allowed its users to pay using Bitcoin (BTC), Monero (XMR), and Litecoin (LTC). The dark web marketplace shut down in 2020, leaving users without time to withdraw funds from their escrow accounts. At the time, some users blamed a prolonged denial-of-service (DDoS) attack, while others suspected an exit scam. The two operators used cryptocurrency to conceal the nature and identities involved in the illicit transactions and encouraged users to use “tumbling” services, which mix and exchange cryptocurrencies to obscure their origin and connection to the marketplace. During the investigation, the feds seized $75 million worth of cryptocurrency at the time of the seizures, as well as cash and precious metals. The DOJ’s account also shows how much attention the operators paid to the practical details of criminal activity. Vendors could receive ratings based on how well they concealed drugs in shipments. That feature suggests the marketplace didn’t just provide a place to trade illegal goods. It also gave users ways to assess how safely vendors operated. In January, Hamilton pleaded guilty to U.S. drug conspiracy charges in Chicago. “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.” continues the press release. The judge’s sentence was imposed on Monday, and the $5 million fine adds a financial penalty to the lengthy prison term. The case also involves Pavey, 41, of Ormond Beach, Florida, who pleaded guilty last year and admitted that he helped create and operate Empire Market. He agreed to forfeit about 1,584 bitcoin, two boxes containing 25-ounce gold bars, three cars and two properties in Florida, and he is due to be sentenced later this month. The sentence was announced by federal prosecutors and investigators from the FBI, the U.S. Postal Inspection Service and Homeland Security Investigations. Follow me on Twitter: @securityaffairs and Facebook and Mastodon Pierluigi Paganini (SecurityAffairs – hacking, newsletter)