Dark web co-creator's $100M Bitcoin forfeited after 40-year sentence

A 30-year-old man who co-operated a $430 million dark web drug marketplace has been sentenced to four decades in federal prison. Raheim Hamilton must also surrender 1,230 Bitcoin (BTC), currently valued at around $100 million.

The fate of those coins is determined by a 2025 White House directive. That directive mandates that Bitcoin forfeited through court proceedings be placed into a national reserve, with a prohibition on selling it.

How a Hidden Website Moved $430 Million

Operating from 2018 through 2020, Empire Market existed on the dark web—a concealed portion of the internet accessible solely via specialised browsers.

Over four million transactions with a total value exceeding $430 million were processed by the platform, according to the US Justice Department. Approximately $375 million of that sum came from drug sales, which included at least 13 kilograms of fentanyl.

Cryptocurrency was the required payment method. Hamilton and co-creator Thomas Pavey directed users to mixing services—tools that blend coins from numerous individuals to obscure transaction trails.

Additionally, customers could rate sellers on their effectiveness at concealing drugs within postal shipments.

On Monday, US District Judge Steven C. Seeger imposed a 40-year sentence on Hamilton and a $5 million fine. He also forfeits 24.4 Ethereum (ETH) and three properties in Virginia.

Where Does $230 Million in Seized Bitcoin Go?

Pavey, aged 41, had previously agreed to surrender approximately 1,584 BTC, gold bars, three vehicles, and two properties in Florida. His sentencing is scheduled for later this month.

Combined, the forfeited coins from both individuals total 2,814 BTC. At the current bitcoin price of $83,045, that sum is roughly $234 million.

An executive order issued in March 2025 mandates that Bitcoin ultimately forfeited through criminal or civil proceedings be placed into the Strategic Bitcoin Reserve. Coins deposited there cannot be sold.

However, the order allows for exceptions, such as returning assets to identifiable crime victims. The Justice Department's announcement did not specify where Hamilton's coins will end up.

Congress is considering a similar approach. A House committee voted 28-21 on September 16 to advance a Strategic Bitcoin Reserve bill that would retain forfeited Bitcoin for a minimum of 20 years.

If both forfeitures become final and no exception is applied, the order would direct Empire Market's Bitcoin into a stockpile built for retention, not for sale.