The case
When selling Bitcoin becomes a federal money-transmission case.
Freeman sold bitcoin directly to thousands of customers and operated vending machines while advocating financial privacy. Prosecutors said his business evaded required registration and safeguards, served fraudsters, concealed income, and knowingly participated in money laundering. Freeman’s supporters say he screened customers, stopped scams when he detected them, relied on legal guidance, and was blamed for crimes committed by people from whom his customers were buying bitcoin.
Financial privacy is not evidence of criminal intent.
The government may prosecute provable participation in fraud. It should not use privacy advocacy, cash-like exchange, or a refusal to surveil every customer as substitutes for proof of that participation. Freeman’s acquittal on the substantive money-laundering count matters, as do the precautions and returned funds described by his supporters.
Freeman was convicted in December 2022 and sentenced in October 2023. The trial judge acquitted him on one substantive money-laundering count. The remaining convictions and 96-month sentence were affirmed, and Supreme Court review was denied.
Prosecutors said Freeman ran an unlicensed money-services business, concealed its nature from banks, failed to follow anti-money-laundering rules, evaded taxes, and knowingly facilitated transactions connected to fraud.
Supporters say Freeman was never convicted of fraud, took meaningful precautions, stopped scams and returned funds when he discovered them, reasonably relied on legal guidance, and was punished for protecting privacy.
Editorial note: This is defense-centered advocacy. Court outcomes, government allegations, defense arguments, and family testimony are labeled separately. The claims about precautions and returned funds come from the campaign and defense record.