US Department of Justice Charged Investor Roger Ver with Tax Fraud
Roger Ver, known as “Bitcoin Jesus”, is accused of $48 million tax fraud. He faces charges of mail fraud, tax evasion and filing false returns. Arrested in Spain, the US requests extradition. He is also being sued by Genesis and CoinFex.
This Tuesday, officials from the United States Department of Justice (DOJ) announced charges against one of the first investors in Bitcoin startups, Roger Ver, popularly known by many as the “Bitcoin Jesus.”
Through a statement published on April 30, the US Department of Justice indicated that authorities in Spain had arrested Roger Ver, alleging various criminal charges in the United States, including mail fraud, tax evasion and filing false tax returns.
Additionally, the US government noted that Roger Ver defrauded the Internal Revenue Service (IRS) of approximately $48 million by failing to report capital gains on his sale of Bitcoins and other assets.
Likewise, according to the indictment filed on February 15, but revealed on Monday, Roger Ver allegedly took control of approximately 70,000 BTC in June 2017, before the now famous bull run, and sold many of them for $240 million.
“As a result of his expatriation, Roger Ver was required under US law to file tax returns reporting capital gains from the constructive sale of his assets worldwide, including Bitcoins, and to report the fair market value of their assets,” the DOJ said.
Despite not being a US citizen during 2017, Roger Ver was still legally required to report to the IRS and pay taxes on certain distributions, which he allegedly failed to do, causing considerable losses to the IRS. Because of this, DOJ officials said they plan to extradite Roger Ver from Spain to the United States for trial.
From “Bitcoin Jesus”, to Being Accused of Fraud: Roger Ver Faces Charges in the United States
Roger Ver obtained citizenship in Saint Kitts and Nevis in 2014, although he shortly after renounced it, in a process known as expatriation. This action subjected him to US tax laws, including reporting capital gains from the sale of his assets around the world, including Bitcoins, and paying an “exit tax” on those gains.
Ver’s legal problems increased after he renounced his US citizenship in 2014, after acquiring citizenship in St. Kitts and Nevis. Consequently, he was required to declare capital gains on his global assets, including 131,000 BTC, valued at about $871 each at the time.
Ver was a strong proponent of Bitcoin Cash. Furthermore, in 2022, Roger Ver was involved in a scandal with the crypto platform CoinFlex, which claimed that he owed them $47 million.
Roger Ver recently expressed in X that “Don’t expect bad people to do good things.” He has been involved in the Bitcoin community since its early days, when he was supposedly giving away BTC for free, earning him the nickname “Bitcoin Jesus.” However, he then went on to promote the Bitcoin Cash (BCH) fork and has since attempted to grow the fork and its crypto community, stating that “BCH is the “true Bitcoin.”
Reactions to Ver’s Arrest
Cryptocurrency investor Dan Held, former Head of Marketing of the popular exchange Kraken, stated in X that Ver “deserves everything he is about to receive”, this, after “almost destroying Bitcoin.”
“Roger Ver attacked my livelihood by trying to get me fired, called others to damage my relationships, and attacked my reputation,” Held expressed in X, adding that “It misaligned expectations around Bitcoin so much that it led to a civil war.”
By Leonardo Perez