A dark web kingpin who helped run a $430 million criminal empire—peddling everything from heroin to hacking tools—just admitted guilt in federal court, proving once again that lawlessness on the internet won’t hide criminals from American justice.
Story Snapshot
- Raheim Hamilton pleaded guilty February 1, 2026, to running Empire Market, a dark web bazaar responsible for over $430 million in illegal sales between 2018 and 2020
- The platform enabled 4 million transactions involving drugs, stolen data, counterfeit currency, and malware across 4,500 vendors using cryptocurrency to evade detection
- Hamilton faces a minimum 10-year prison sentence up to life, forfeiting 1,230 Bitcoin, 24.4 Ether, and three Virginia properties to federal authorities
- Co-operator Thomas Pavey previously pleaded guilty in 2025, agreeing to surrender 1,584 Bitcoin, gold bars, vehicles, and two Florida properties
Criminal Marketplace Operated for Two Years Before Seizure
Raheim Hamilton, 30, of Suffolk, Virginia, entered his guilty plea in U.S. District Court for the Northern District of Illinois, acknowledging his role in creating and operating Empire Market from February 2018 through January 2020. The marketplace operated on the dark web’s Tor network, utilizing .onion domains to shield users’ identities while hosting approximately 52,000 illegal products at its peak. Hamilton and co-conspirator Thomas Pavey charged vendors $750 registration fees to sell narcotics including Adderall, heroin, and methamphetamine, alongside stolen credit cards, counterfeit documents, and hacking tools. The platform processed transactions exclusively in cryptocurrency—Bitcoin, Litecoin, and Monero—to obscure money trails from law enforcement scrutiny.
Co-Creator of Dark Web Site 'Empire Market' Admits Role in $430M Illegal Marketplace
https://t.co/lyp7HYjpnS— Townhall Updates (@TownhallUpdates) February 2, 2026
Operators Designed Platform to Evade Law Enforcement Detection
Hamilton and Pavey deliberately engineered Empire Market to circumvent federal authorities, instructing users to “tumble” cryptocurrency through services like Tornado Cash to launder proceeds and erase transaction histories. The duo had prior experience in dark web crime, having sold counterfeit U.S. currency on AlphaBay before its 2017 shutdown by law enforcement. Their new platform became a money laundering hub, teaching criminals evasion tactics that exploited cryptocurrency’s perceived anonymity. This represents precisely the type of government-challenging criminal innovation that threatens rule of law and public safety, requiring robust federal response to protect American communities from drug trafficking and cybercrime facilitated by technological loopholes.
Federal Takedown Seized $75 Million in Assets and Servers
International law enforcement coordinated by U.S. agencies including the FBI Chicago Field Office, Postal Inspection Service, and Homeland Security Investigations seized Empire Market’s servers in January 2020, shutting down operations that had generated over $375 million in drug sales alone. Authorities confiscated approximately $75 million in cryptocurrency, cash, and precious metals during the takedown. Initial user speculation blamed the shutdown on an exit scam or DDoS attack, but unsealed indictments confirmed coordinated law enforcement action. Hamilton’s plea agreement mandates forfeiture of 1,230 Bitcoin and 24.4 Ether plus three Virginia properties, while Pavey’s earlier agreement targets 1,584 Bitcoin, gold bars, multiple vehicles, and two Florida properties, demonstrating federal determination to strip profits from cybercriminals.
Convictions Highlight Limits of Cryptocurrency Anonymity
Both operators face sentences ranging from 10 years to life imprisonment under federal drug conspiracy charges, with Hamilton’s sentencing scheduled for June 17, 2026, before Judge Steven C. Seeger. The prosecutions, led by Assistant U.S. Attorneys Melody Wells and Ann Marie Ursini, showcase advancing law enforcement capabilities to trace cryptocurrency transactions despite criminals’ reliance on tumbling services and privacy coins. While copycat dark web marketplaces like BreachForums continue emerging, the Empire Market takedown sets a precedent similar to prior Genesis Market and AlphaBay shutdowns. This case proves American resolve to pursue cybercriminals regardless of technological barriers, protecting citizens from the drug epidemic and identity theft fueled by anonymous online platforms that undermine social order and individual security.
Sources:
Empire Market Dark Web Owners Charged – The Breach Report
Empire Market Owners Charged – Security Affairs
Co-Creator of Dark Web Site ‘Empire Market’ Admits Role in $430M Illegal Marketplace – Townhall
