Ian Freeman, a New Hampshire libertarian activist, has been forced to repay $3.5 million to those defrauded by a cryptocurrency scam he participated in December 2022. Freeman was involved in running an unauthorized cryptocurrency exchange for romance scam artists to launder funds.
The court ordered Freeman to refund the money to the 29 affected victims, with the funds coming from over 100 Bitcoins seized from Freeman after his conviction. The Department of Justice was able to convert the cryptocurrency into dollars. U.S. Attorney Jane Young said Freeman’s business caused much distress to vulnerable victims. She noted that it is rare for romance scam victims to recover losses.
Prosecutors said Freeman failed to register his Bitcoin exchange business as required. He also used a church he created to shield assets from taxes. Prosecutors said Freeman failed to register his Bitcoin exchange business as required. Ian Freeman was sentenced to 8 years in prison and fined $40,000.
The case involved a group known as the Crypto Six. Three other members pleaded guilty to wire fraud charges. The fourth member pleaded guilty to operating an unlicensed money transmitter business.
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