A co-founder of the dark web marketplace Empire Market has been sentenced to 40 years in federal prison in the United States after admitting his role in a criminal operation that facilitated more than four million transactions worth over $430 million.
The US Department of Justice announced the sentence for Raheim Hamilton, 30, of Suffolk, Virginia, on October 7, 2026. Hamilton also received a $5 million fine after pleading guilty to a federal drug-conspiracy charge. The marketplace operated between 2018 and 2020 and enabled users to buy and sell illegal goods and services anonymously.
What Was Empire Market?
Empire Market was an online marketplace accessible through the dark web. It offered a range of illegal goods and services, including stolen account credentials, personal information, counterfeit currency and hacking tools.
Hamilton operated the platform with Thomas Pavey, who used the online alias “Dopenugget.” Hamilton was also known online as “Sydney” and “ZeroAngel.”
According to US prosecutors, the pair developed the marketplace to help users conceal their identities and evade law enforcement. The platform required transactions to be conducted using cryptocurrency and encouraged methods intended to make financial transfers harder to trace.
More Than Four Million Transactions Reported
The US Department of Justice said Empire Market facilitated more than four million transactions valued at over $430 million during its operating period. Drug sales represented the largest category of activity, accounting for nearly $375 million in net sales, according to the department.
At its peak in August 2020, the marketplace reportedly had approximately 1.68 million registered users, more than 5,000 vendors and nearly 360,000 buyers.
The platform also used vendor ratings and moderation systems to manage disputes between buyers and sellers. These features helped it function as an organised marketplace despite the illegal nature of the activity.
How Investigators Built the Case
Law enforcement agencies investigated the marketplace through undercover purchases and other evidence-gathering measures. The investigation focused on the platform's role in facilitating illegal sales and helping users conceal transactions.
Empire Market shut down in August 2020 following repeated cyberattacks and extortion demands. Its sudden closure also raised concerns among users who reportedly could not withdraw funds held in the marketplace's escrow system.
Hamilton and Pavey were charged in 2024. Hamilton later pleaded guilty in January 2026, paving the way for the sentence announced this month.
Prison Sentence, Fine and Asset Forfeiture
A federal judge sentenced Hamilton to 40 years in prison and imposed a $5 million fine. Under his agreement with authorities, Hamilton also agreed to forfeit assets that included approximately 1,230 Bitcoin, 24.4 Ether and three properties in Virginia.
Pavey has also pleaded guilty in connection with the case. According to the Justice Department's sentencing announcement, he agreed to forfeit cryptocurrency and other assets, including gold bars, vehicles and properties in Florida. His sentencing was scheduled for later in October.
The forfeiture arrangements form part of the authorities' efforts to recover proceeds connected to the operation. Cryptocurrency valuations can fluctuate significantly, so the value of the digital assets depends on the date and method of calculation.
What the Empire Market Case Means for Cybercrime Enforcement
The case highlights how online criminal marketplaces can combine anonymous communications, cryptocurrency payments and stolen digital information to facilitate large-scale illegal activity.
It also demonstrates the role of coordinated investigations, undercover operations and digital financial analysis in building cases against people accused of managing such platforms.
For legitimate organisations, maintaining reliable transaction records and effective financial controls remains important. Businesses looking to strengthen their financial oversight can learn more about auditing services in India.
Hamilton's 40-year sentence marks a major development in the prosecution of the people behind Empire Market, while the proceedings involving his co-defendant remain a separate part of the case.