Raheim Hamilton, a 30-year-old co-founder of the dark web platform Empire Market, received a 40-year federal prison sentence. As part of the legal resolution, Hamilton agreed to forfeit 1,230 Bitcoin, valued at approximately $100 million, along with 24.4 Ethereum and three properties in Virginia. Additionally, the court imposed a fine of $5 million.
Empire Market operated between 2018 and 2020, facilitating over four million transactions totaling more than $430 million, with $375 million attributed to drug sales. Co-founder Thomas Pavey, 41, previously agreed to forfeit 1,584 Bitcoin, gold bars, vehicles, and properties in Florida. Combined, the two founders are forfeiting 2,814 Bitcoin, currently worth about $234 million.
The future of these assets is subject to a March 2025 executive order, which mandates that Bitcoin forfeited in legal proceedings be transferred to a Strategic Bitcoin Reserve. Under this directive, the government is generally prohibited from selling these holdings, though exceptions exist for victim restitution. Congress is also reviewing legislation to formalize a 20-year holding period for such assets.
