BeInCrypto • October 9th 2026, 12:50 PM
Dark Web Founder Loses $100 Million in Bitcoin After 40-Year Sentence: Where Does It Go?
Key Summary
The founder of a $430 million dark web drug market has been sentenced to 40 years in prison and forfeited 1,230 Bitcoin worth about $100 million. The fate of these coins is governed by a 2025 White House order that directs forfeited Bitcoin into a national reserve, where it cannot be sold. Congress is considering a similar bill that would hold forfeited BTC for at least 20 years.
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Dark Web Bitcoin Heist: Where Does $100 Million Go After 40-Year Sentence
The Heist
A 30-year-old who co-ran a $430 million dark web drug market got 40 years in federal prison. Raheim Hamilton also agreed to give up 1,230 Bitcoin (BTC), worth about $100 million today.The White House Order
It sends Bitcoin forfeited in court cases into a national reserve and bars its sale. The 2025 executive order directs Bitcoin into the Strategic Bitcoin Reserve, a stockpile built to hold, not sell. However, the order allows exceptions, including returning funds to identifiable crime victims.The Fallout
Hamilton and co-creator Thomas Pavey pushed users toward mixers, services that blend many people's coins so payments are harder to trace. Users could also rate sellers on how well they hid drugs in the mail. US District Judge Steven C. Seeger sentenced Hamilton on Monday and fined him $5 million. He also forfeits 24.4 Ethereum (ETH) and three Virginia properties.The Future
Where Does $230 Million in Seized Bitcoin Go? Congress is weighing the same idea. On Sept. 16, a House committee voted 28-21 to advance a Strategic Bitcoin Reserve bill that would hold forfeited BTC for at least 20 years. If both forfeitures become final and no exception applies, the order sends Empire Market's Bitcoin into the stockpile.#Bitcoin#US#DarkWeb#Crypto