Man jailed for unlicensed bitcoin operation ordered to pay $3.5M in restitution

A federal judge in New Hampshire has determined that a man sentenced to eight years in prison for running an unlicensed bitcoin exchange business owes 29 victims more than $3.5 million in restitution.

Prosecutors said Ian Freeman, a libertarian activist and radio show host, created a business that catered to fraudsters who targeted elderly women with romance scams, serving as “the final step in permanently separating the victims from their money.”

The judgment was entered Friday and announced by the U.S. attorney’s office Tuesday.

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“Ian Freeman’s money laundering business caused many vulnerable people unnecessary anguish. Nothing will ever take away the pain he caused these victims, but I am grateful that the dedicated prosecution team on this case was able to make many of them financially whole,” U.S. Attorney Jane Young said in a news release.

Freeman’s attorney, Mark Sisti, said the judgement was a negotiated agreement and that he was pleased with the outcome.

Freeman, 43, was sentenced last year. He said he did not believe he broke the law and that he was trying to get people to adopt bitcoin. He said there were times he detected fraud and protected many potential scam victims. He apologized for not being able to help them all.

Freeman said he devised a series of questions for customers, including whether a third party was putting them up to their transactions or if they were under duress. Some victims lied about their circumstances, he said. Freeman also said he didn’t learn about scam victims until he saw their stories in the news.

He was convicted of eight charges in December 2022, although his conviction on a money laundering charge was later overturned by the judge. The prosecution is appealing it to the 1st Circuit Court of Appeals.

Freeman was sentenced on the remaining charges, which include operating an unlicensed money transmitting business and conspiracy to commit money laundering and wire fraud. Freeman’s lawyers are appealing the convictions.