Empire Market Operator Pleads Guilty to $430 Million Drug Conspiracy

The dark web's criminal economy suffered a major blow this week as Raheim Hamilton, one of the architects behind Empire Market, pleaded guilty to federal drug conspiracy charges for his role in facilitating over $430 million in illegal transactions between 2018 and 2020.

The Rise and Fall of Empire Market

At its peak in August 2020, Empire Market had become one of the largest dark web marketplaces, boasting approximately 1.68 million unique registered users. The platform operated as a hidden service accessible only through TOR browsers, positioning itself as an "AlphaBay clone" after the notorious dark web marketplace was shut down by authorities in 2017.

The marketplace's infrastructure was impressive by criminal standards. With nearly 360,000 buyers and more than 5,000 vendors, Empire Market processed over 4 million transactions during its operation. Hamilton, operating under the aliases "Sydney" and "ZeroAngel," co-owned and operated the platform alongside Thomas Pavey ("Dopenugget") starting in August 2017.

A Drug Trafficking Superhighway

While Empire Market facilitated various illegal activities including the sale of stolen account credentials, personally identifying information, counterfeit currency, and computer hacking tools, drug sales dominated the platform's operations. Court documents reveal that drug transactions totaled nearly $375 million over the site's lifespan, representing the most prevalent activity with 166,029 vendor listings for controlled substances.

Hamilton's guilty plea included admissions about the specific types and quantities of drugs distributed through the platform:

• 103,396 grams of heroin
• 71,992 grams of methamphetamine
• 446,683 grams of cocaine
• 7,695 grams of cocaine base
• 13,314 grams of fentanyl
• Various other controlled substances

The scale of operations was staggering. In August 2020 alone, authorities intercepted a package containing 443.5 grams of methamphetamine that had been ordered through Empire Market. Between April 2019 and May 2020, law enforcement agents made multiple undercover purchases, acquiring at least 105.4 grams of heroin and 143.5 grams of methamphetamine from vendors on the platform.

Sophisticated Criminal Enterprise

Empire Market wasn't just a passive marketplace. Hamilton and Pavey actively designed the platform to help users avoid law enforcement detection and launder money from illicit transactions. All transactions were conducted in cryptocurrency to maintain user anonymity, demonstrating the operators' understanding of both technology and criminal methodology.

The platform included sophisticated features like dispute resolution systems. Hamilton personally handled some cases and supervised approximately five moderators who resolved conflicts between vendors and customers, showing the level of organization behind the operation.

Before Empire Market, Hamilton had already established himself in the dark web criminal ecosystem. He admitted to selling counterfeit U.S. currency on AlphaBay under the "ZeroAngel" username from June 2016 to July 2017, indicating his long-standing involvement in online criminal marketplaces.

Justice Department's Multi-Year Investigation

When Hamilton and Pavey were charged in July 2024, the U.S. Justice Department announced that authorities had already seized $75 million in cryptocurrency during the investigation. The scale of asset forfeiture in this case is unprecedented:

Raheim Hamilton's forfeitures:

• Approximately 1,230 bitcoin
• 24.4 Ether
• Three Virginia properties

Thomas Pavey's forfeitures:

• Approximately 1,584 bitcoin
• Two boxes containing 25-ounce gold bars
• Three cars
• Two Florida properties

Legal Consequences and Broader Implications

Hamilton entered his guilty plea in the U.S. District Court for the Northern District of Illinois. He now faces a mandatory minimum sentence of 10 years in federal prison and a maximum of life. Pavey also pleaded guilty last year to a federal drug conspiracy charge and faces the same potential sentence.

This case represents one of the most significant takedowns of a dark web marketplace in recent years. The sheer volume of drug trafficking, the sophisticated infrastructure, and the massive financial transactions involved make Empire Market a landmark case in the ongoing battle against online criminal enterprises.

The Evolving Dark Web Landscape

The Empire Market takedown comes amid a broader crackdown on dark web criminal activities. Recent related cases include:

• Slovakian man pleading guilty to operating a darknet marketplace
• Microsoft disrupting the massive RedVDS cybercrime virtual desktop service
• Jordanian pleading guilty to selling access to 50 corporate networks
• Spanish authorities arresting 34 suspects linked to Black Axe cybercrime operations

These coordinated efforts demonstrate that law enforcement agencies are becoming increasingly sophisticated in their ability to infiltrate, monitor, and ultimately dismantle dark web criminal enterprises. The use of undercover purchases, cryptocurrency tracking, and international cooperation has proven effective against even the most carefully constructed criminal platforms.

For cybersecurity professionals and law enforcement, the Empire Market case provides valuable insights into the operational security measures employed by dark web marketplace operators, the scale of modern online drug trafficking, and the effectiveness of current investigative techniques. The case also highlights the ongoing challenge of combating cryptocurrency-enabled crime and the need for continued development of blockchain analysis tools and international cooperation in cybercrime investigations.