Keene Resident Appeals Conviction in Unlicensed Cryptocurrency Business Case
Keene resident Ian Freeman has recently filed an appeal to the U.S. Court of Appeals for the First Circuit, challenging his conviction and sentence related to operating an unlicensed cryptocurrency business. Freeman’s appeal comes just eight days after he received an eight-year prison sentence, along with two years of supervised release and a $40,000 court fine.
The appeal will be heard by the U.S. Court of Appeals for the First Circuit, which primarily reviews trial court proceedings and decisions to ensure fairness and correct application of laws. Unlike trial courts, appellate courts do not hear witnesses or have a jury.
Freeman, a prominent local libertarian activist and radio show host, was found guilty on eight counts associated with his cryptocurrency operation in December. The charges included operating an unlicensed money transmitting business, conspiracy to operate an unlicensed money transmitting business, conspiracy to commit money laundering, and attempts to evade or defeat tax from 2016 to 2019. However, Judge Joseph Laplante acquitted him of a charge of money laundering in August.
Prosecutors alleged that Freeman’s business facilitated internet scammers in hiding money obtained through fraudulent activities. During his sentencing hearing, it was revealed that Freeman charged high fees to exchange proceeds from romance and other scams into Bitcoin, resulting in him making over $1 million.
When given the opportunity to speak at his hearing, Freeman asserted that he did not believe he had broken any laws. He expressed remorse for failing to detect and prevent all scam victims but argued that he had asked customers multiple questions to identify potential fraudsters and prevent them from using his cryptocurrency service. According to Freeman, the scam victims lied to him, making it challenging to catch and prevent the scammers effectively.
During a September hearing, prosecutors brought forward victims of romance scams who explained how they had lost thousands of dollars. One victim claimed to have sent $300,000 to a scammer who instructed her to transfer the money to Freeman for conversion to Bitcoin.
Mark Sisti, Freeman’s attorney, has not yet commented on the appeal. Furthermore, the court filings did not provide any details about the arguments made for the appeal.
The appeal process will determine the outcome of Freeman’s conviction and sentence. As the case continues, it sheds light on the complexities and legal considerations surrounding unlicensed cryptocurrency businesses, and the impact they can have on unsuspecting individuals who fall victim to fraudulent schemes.
