Empire Market co-founder Raheim Hamilton has been sentenced to 40 years in federal prison and ordered to forfeit 1,230 Bitcoin (BTC) worth approximately $100 million, following a federal prosecution over the $430 million dark web illicit marketplace.
US District Judge Steven C. Seeger sentenced the 30-year-old on Monday, imposing a $5 million fine alongside the forfeiture of 1,230 BTC, 24.4 Ethereum (ETH), and three Virginia properties.
Details of the $430 Million Dark Web Bust
According to the US Justice Department, Empire Market operated from 2018 to 2020 as an encrypted marketplace, facilitating over four million transactions totaling more than $430 million. Prosecutors stated that nearly $375 million derived from illicit drug sales, including at least 13 kilograms of fentanyl.
Hamilton and co-creator Thomas Pavey, 41, mandated cryptocurrency payments and instructed buyers to utilize mixing services to obscure transactions. Pavey previously agreed to forfeit 1,584 BTC, gold bars, three vehicles, and two Florida properties ahead of his sentencing scheduled for later this month. Combined, the two co-founders are relinquishing 2,814 BTC, valued at roughly $234 million at the current market price of $83,045.
Key details from the federal case include:
- Raheim Hamilton: Sentenced to 40 years, fined $5 million, forfeiting 1,230 BTC and 24.4 ETH.
- Thomas Pavey: Awaiting sentencing after agreeing to forfeit 1,584 BTC, gold, and real estate.
- Empire Market: Processed $430 million across 4 million trades, including $375 million in drug sales.
- Combined Forfeiture: Total crypto assets seized reach 2,814 BTC ($234 million).
Destination of the Seized Bitcoin
The ultimate destination of the forfeited cryptocurrency falls under a March 2025 Executive Order, which directs criminal and civilly forfeited Bitcoin into a newly established Strategic Bitcoin Reserve and prohibits its sale on the open market. The order allows exceptions for direct victim restitution, though federal prosecutors did not specify whether any assets would be diverted under that clause.
Legislative efforts parallel this policy shift. On Sept. 16, a House committee voted 28-21 to advance a bill establishing a Strategic Bitcoin Reserve that mandates holding government-forfeited Bitcoin for a minimum of 20 years. Unlike historical instances where federal law enforcement executed market sales—such as prior government transfers of seized Bitcoin or instances of moving seized Bitfinex Bitcoin to exchange wallets—these assets are now slated to remain in federal custody.
Why It Matters
This enforcement action highlights the dramatic shift in how the United States federal government manages law enforcement crypto seizures. Previously, multi-million-dollar forfeitures resulted in public auctions or market sales that generated direct supply pressure on exchanges. Under the current strategic reserve framework, substantial seizures permanently remove coins from active market circulation, converting criminal enforcement actions into long-term sovereign asset accumulation.
