The co-founder and manager of Empire Market , one of the largest illegal markets operating on the dark web, was sentenced to 40 years in prison for his participation in a network that allegedly facilitated illegal transactions worth a total of approximately $430 million .
Raheim Hamilton , 30 , known online under the aliases “ Sydney ” and “ ZeroAngel ,” had a central role in operating the platform from 2017 to 2020. The case is yet another example of how international authorities are attempting to dismantle organized dark web markets , even when their operators use anonymization technologies and cryptocurrencies.
A marketplace designed along the lines of AlphaBay
Empire Market operated as a hidden service over the Tor network, allowing users to hide their real location and login details. The platform was designed and promoted as a successor and essentially a clone of AlphaBay, one of the largest dark web marketplaces before its closure in 2017.
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Hamilton had previously been active on AlphaBay, selling between 2016 and 2017 under the name “ZeroAngel.” After that market was shut down, Empire Market managed to attract a large number of users and sellers, developing into one of the most important hubs for illegal e-commerce.
According to court records, Hamilton worked with Thomas Pavey, known as “Dopenugget.” The two men allegedly had a role in managing the platform and facilitating more than 4 million transactions between buyers and sellers.
Hundreds of millions of dollars in illegal transactions
Although Empire Market traded different categories of illegal goods, from stolen account information and counterfeit currency to hacking tools and personal data, the majority of the activity involved drugs.
Sales of controlled substances were estimated to be about $375 million, with more than 166,000 listings for related substances. The data presented by the US Department of Justice includes large quantities of fentanyl, cocaine, methamphetamine and heroin.
At the peak of its operation, in August 2020, Empire Market reportedly had approximately 1.68 million registered users, including more than 5,000 sellers and nearly 360,000 buyers.
Empire Market: Cryptocurrencies and anonymity mechanisms
Empire Market's operating structure was largely based on anonymity. Transactions were conducted exclusively in cryptocurrencies, while administrators encouraged the use of services and tumbling to hide the path of the money.
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At the same time, users could communicate via encrypted channels and rate sellers. The rating process was not only about the quality of the products, but also the sellers' ability to hide illegal products during their shipment.
The platform also had a dispute resolution mechanism. Hamilton reportedly oversaw about five moderators who intervened in disputes between buyers and sellers.
The authorities' investigation and the markets under cover
The case was not based solely on digital traces. US authorities carried out repeated undercover purchases from April 2019 to May 2020. Among other things, quantities of methamphetamine and heroin were acquired through the platform.
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In a separate operation, a package containing approximately 443.5 grams of methamphetamine and ordered through Empire Market was seized.
In July 2024, when US authorities announced the prosecutions, they revealed that approximately $75 million worth of cryptocurrencies.
The end of the market and the seizure of property
Empire Market suddenly stopped operating in 2020, following a series of DDoS attacks and extortion incidents. The sudden outage raised suspicions of a so-called exit scam, as users reportedly did not have sufficient time to withdraw funds held in escrow accounts.
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As part of his plea deal with authorities, Hamilton agreed to surrender three properties in Virginia, approximately 1,230 bitcoins and 24.4 Ether. Pavey, whose sentence is expected to be announced later, agreed to surrender two properties in Florida, approximately 1,584 bitcoins, gold bars and three cars.
Hamilton’s conviction highlights that Tor’s anonymity and the use of cryptocurrencies are not a complete shield from authorities. Despite technical efforts to conceal identity and financial flows, investigations can combine digital evidence, undercover transactions, and financial trails, turning even seemingly inaccessible dark web infrastructures into the subject of years-long criminal investigations.
source: www.bleepingcomputer.com
