This flag was crafted from Statesman's cape and was donated to Paragon City to replace the flag destroyed by the invading Rikti. It now flies over Paragon City Hall to honor the sacrifice made by Hero 1 and the rest of Omega Team.
The Freedom Badge is located in the Atlas Plaza neighborhood of Atlas Park. The badge marker is located at the base of the flagpole on top of City Hall. This badge is inaccessible to non-airborne heroes without teleporting, however with the retail Good Versus Evil Edition boxed set, the boosted range made available by the jump pack allows even low-level characters the ability to reach both the Freedom Badge and Top Dog (awarded on top of the large globe on the back of the statue of Atlas).
Its coordinates are (129.14063, 121.396369, -641).