Empire Market Co-Creator Sentenced to 40 Years for $430 Million Dark Web Crime

The Rise and Fall of Empire Market

Empire Market was a dark web marketplace that operated from 2018 to 2020. According to Security Affairs↗ (opens in a new tab), it became one of the largest criminal trading platforms online, handling more than four million transactions worth over $430 million. The site allowed users to buy and sell illegal goods and services, including drugs, stolen credentials, personal data, counterfeit currency, and hacking tools. Payments were made using cryptocurrencies such as Bitcoin, Monero, and Litecoin, which made tracing transactions more difficult.

The platform was co-owned and operated by Raheim Hamilton and Thomas Pavey. Both men had previously sold counterfeit US currency on another dark web marketplace, AlphaBay, before launching Empire Market. The site grew quickly, attracting vendors and buyers from around the world. It even included features like vendor ratings, which let buyers judge how well sellers concealed drugs in shipments, showing a focus on operational security and user trust within the criminal community.

Law Enforcement Investigation and Arrests

The US Department of Justice (DoJ), along with the FBI, Homeland Security Investigations, and the US Postal Inspection Service, led the investigation into Empire Market. The authorities tracked the operators despite their use of encryption, cryptocurrency, and the anonymity of the dark web. The investigation resulted in the seizure of $75 million worth of cryptocurrency, as well as cash and precious metals.

In June 2024, Hamilton and Pavey were charged in federal court in Chicago. Hamilton, known online as "Sydney" and "Zero Angel," pleaded guilty to drug conspiracy charges in January. He agreed to forfeit assets including about 1,230 bitcoin, 24.4 Ether, and three properties in Virginia. Pavey, known as "Dopenugget," also pleaded guilty and agreed to forfeit about 1,584 bitcoin, gold bars, cars, and properties in Florida. Pavey's sentencing is scheduled for later this month.

The End of Empire Market

Empire Market shut down in 2020. The closure was abrupt, leaving users unable to withdraw funds from their escrow accounts. Some users blamed a prolonged denial-of-service (DDoS) attack, while others suspected an exit scam, where operators disappear with users' money. The shutdown highlighted the risks for users of illegal marketplaces: not only do they face legal consequences, but their funds are never truly safe.

Sentencing and Penalties

On 7 October 2026, Raheim Hamilton was sentenced to 40 years in federal prison and fined $5 million. The sentence is one of the harshest handed down for running a dark web marketplace. The DoJ press release, quoted by Security Affairs, stressed that using cryptocurrency and the dark web does not guarantee anonymity from law enforcement. The case demonstrates the US government's commitment to pursuing those who profit from large-scale online crime.

What This Means for Cybercrime and Security

The Empire Market case shows how dark web marketplaces can become large-scale criminal businesses, bringing together a range of illegal activities under one roof. It also illustrates the ongoing challenge for law enforcement: tracking and prosecuting operators who use advanced technology to hide their identities. For defenders, the case is a reminder that criminal marketplaces are a major source of stolen credentials, malware, and hacking tools that can later be used in attacks against individuals and organisations.

What Happens Next

With Hamilton sentenced, attention now turns to the sentencing of his co-operator, Thomas Pavey. The case may also encourage further investigations into other dark web marketplaces and their users. For ordinary people, the story is a reminder to be wary of where stolen data and hacking tools come from, and that law enforcement agencies continue to pursue those behind these platforms, even years after they shut down.