The US Department of Justice pursues Bitcoin’s Messiah Roger Ver for alleged tax evasion, leading to his arrest in Spain.
In the early days of Bitcoin, Roger Ver, a well-known advocate who was hailed as the “Bitcoin Jesus,” has been charged with multiple allegations including email fraud, tax evasion, and providing false tax returns. These charges were made public after the unsealing of the indictment, and Roger Ver was arrested over the weekend in Spain.
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Accused of Tax Evasion, Early Bitcoin Promoter Who Started Mining in 2011
Renunciation of Citizenship and the Tax Dilemma of Leaving the Country
Fraud Allegations: And There’s a Ton of Bitcoin Too
Despite Renunciation of Citizenship, There Are Still Tax Obligations
The Far-Reaching Scope of the U.S. Justice Department’s Pursuit, with Celebrities Being the First Targets
Roger Ver, hailing from Santa Clara, California, was an early adopter and active promoter of Bitcoin. Starting in 2011, he accumulated Bitcoin through his companies, MemoryDealers.com Inc. and Agilestar.com Inc. (which sold computer and networking equipment). His influence within the cryptocurrency community was so great that he earned the nickname “Bitcoin Jesus.”
According to the U.S. Department of Justice, the indictment detailed significant turning points in Roger Ver’s life: on February 4, 2014, he obtained citizenship in Saint Kitts and Nevis, followed by renouncing his U.S. citizenship.
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Under U.S. law, this action required Roger Ver to submit accurate reports of global assets (including the amount of Bitcoin held) for capital gains tax purposes and pay an “expatriation tax” on those earnings. At the time of renunciation, Roger Ver and his companies were reported to hold approximately 131,000 Bitcoin, valued at $871 each.
Prosecutors allege that Roger Ver sought professional assistance from a law firm and an appraiser to deal with his tax obligations after renouncing his citizenship, but he concealed the actual extent of his Bitcoin wealth from them. This reportedly led to false tax filings, undervaluation of his company, and omission of personal Bitcoin holdings. By June 2017, it is alleged that Roger Ver’s company still held around 70,000 Bitcoin, which he gained control of and sold by the end of 2017, resulting in approximately $240 million in revenue.
Despite renouncing his U.S. citizenship, Roger Ver is still required to report and pay taxes on specific financial activities related to his U.S. companies. The indictment accuses him of concealing these transactions from accountants, leading to unreported income and unpaid taxes in 2017. It is estimated that Ver’s actions caused the U.S. Internal Revenue Service a loss of at least $48 million.
This case was actively pursued by the Internet Crime Unit of the U.S. Internal Revenue Service and prosecuted by the Tax Division of the Department of Justice, with senior officials in the Central District of California. As the legal battle unfolds, Roger Ver was initially presumed innocent until proven guilty.
The consequences of this case could be far-reaching, impacting perceptions of the complexity of cryptocurrency laws and the responsibilities of its advocates. This high-profile indictment not only highlights the intricate relationship between cryptocurrency and tax obligations but also serves as a stark reminder of the legal consequences of financial negligence and tax evasion.
Roger Ver
Bitcoin Jesus
Tax Evasion
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