8-year prison sentence for New Hampshire man convicted of running unlicensed bitcoin business – Boston News, Weather, Sports
Federal Judge Sentences New Hampshire Man to Eight Years in Prison for Running Unlicensed Bitcoin Exchange
A federal judge in Concord, New Hampshire sentenced Ian Freeman to eight years in prison for operating an unlicensed bitcoin exchange business. Freeman, a libertarian activist and radio show host, was also fined at least $40,000. However, a hearing will be held to determine the amount of money that will be refunded to multiple individuals who claimed to be victims of his illegal enterprise.
Freeman, who is in his 40s, was taken into custody following his sentencing. Prosecutors accused him of running a business that catered to fraudsters who targeted elderly women through romance scams, effectively separating the victims from their money. As he was led out of court, supporters shouted their support for him.
In court, Freeman maintained that he did not believe he had broken the law and claimed that he was attempting to promote the adoption of bitcoin. He stated that he had detected instances of fraud and had protected many potential scam victims. However, he acknowledged that he was unable to help all of them and expressed his regret for that.
Freeman asserted that he implemented a series of questions for customers, such as whether a third party influenced their transactions or if they were under any form of duress. He argued that some victims lied about their circumstances, and he only learned about the scam victims through news reports.
Although Freeman was convicted on eight charges in December, including operating an unlicensed money transmitting business and conspiracy to commit money laundering and wire fraud, a judge overturned his conviction on the money laundering charge. The prosecution is currently appealing this decision. Freeman was sentenced on the remaining charges and requested to remain free on bail while awaiting the appeal. However, Judge Joseph LaPlante denied his request, citing the real harm caused by Freeman’s actions.
The sentencing guidelines recommended a much longer prison term, ranging from approximately 17 to 22 years. Despite not having a prior criminal record and being monitored by the government for the past two years, Freeman’s request for a little over three years in prison was not granted.
Freeman’s wife, Bonnie Freeman, described him as a positive role model and leader in their local church. Sheriff David Hathaway of Santa Cruz County, Arizona, characterized Freeman as an advocate for freedom and the American dream, emphasizing his commitment to promoting free trade capitalism and individual liberty.
The bitcoin transactions were conducted through various channels, including bitcoin kiosks in bars, online platforms, and a mobile app. One victim, a lonely widow, stated last month that she was scammed out of her life’s savings by a man she met on a dating site who instructed her to send $300,000 to Freeman. Another victim shared a similar story of taking out loans and selling her late husband’s truck to send money to the scammer.
Five other individuals were arrested alongside Freeman in 2021. Three of them pleaded guilty to wire fraud for opening accounts at financial institutions to facilitate the sale of virtual currency. They received lenient sentences. The fourth person pleaded guilty to operating an unlicensed money transmitting business and received an 18-month prison sentence. Charges were dropped against the fifth person.
Freeman’s conviction and sentencing serve as a warning for individuals involved in fraudulent activities related to bitcoin and other digital currencies. Law enforcement agencies and regulators continue to crack down on illegal activities within the cryptocurrency space, aiming to protect potential victims from financial harm.
