A New Hampshire man who ran an unlicensed bitcoin exchange business has been sentenced to eight years in prison and fined at least $40,000 by a federal judge. Ian Freeman, a libertarian activist and radio show host, was convicted of multiple charges related to his bitcoin business that catered to fraudsters who targeted elderly women with romance scams.
Freeman’s Bitcoin Business
Freeman operated a website called Shire Free Church Exchange, where he sold and bought bitcoin and other cryptocurrencies without registering with the federal government or complying with anti-money laundering regulations. He also used bank accounts in his name and in the names of churches to facilitate his transactions. He advertised his services on his radio show, Free Talk Live, and on social media platforms.
According to prosecutors, Freeman’s bitcoin business served as “the final step in permanently separating the victims from their money.” They said that he knowingly helped fraudsters who posed as romantic partners or government agents to scam elderly women out of their life savings. They presented evidence that Freeman received over $10 million from over 200 customers, many of whom were victims of romance scams.
Freeman’s Defense and Sentence
Freeman denied that he broke the law and said that he was trying to promote bitcoin adoption. He said that he detected fraud and protected many potential scam victims by asking them questions and cooperating with law enforcement. He apologized for not being able to help them all and said that some victims lied about their circumstances.
Freeman’s lawyers argued that he was a peaceful activist who exercised his right to free speech and free association. They said that he did not intend to defraud anyone and that he was not responsible for the actions of his customers. They asked for a sentence of a little over three years in prison.
However, U.S. District Court Judge Joseph LaPlante rejected Freeman’s defense and imposed a sentence of eight years in prison and a fine of at least $40,000. He said that Freeman caused real harm to his victims and that he showed no remorse for his conduct. He also ordered a hearing to determine how much money Freeman will have to pay in restitution to his victims.
Freeman’s Supporters and Co-Defendants
Freeman had several supporters who attended his trial and sentencing. They shouted “Love you, Ian” as he was taken away in handcuffs. They also held signs outside the courthouse that read “Free Ian” and “Bitcoin is not a crime.”
Freeman was one of six people who were arrested in March 2021 in connection with the bitcoin business. Three of them pleaded guilty to wire fraud and received light sentences. Two others are awaiting trial.
