Roger Ver, the early adopter and influential figure in the world of cryptocurrency, faced legal ramifications with his arrest in Spain on charges related to tax evasion and mail fraud, as detailed by the U.S. Department of Justice.
Ver, often referred to as the “Bitcoin Jesus” due to his early involvement in Bitcoin and fervent advocacy for digital currencies, found himself entangled in a legal battle after allegations surfaced that he had evaded paying taxes amounting to at least $48 million to the U.S. government. These charges were outlined in an indictment filed in federal court in Los Angeles, which was unsealed following his apprehension during the weekend while traveling in Spain.
Upon Ver’s arrest, his legal representative, Bryan Skarlatos, expressed astonishment and disappointment, asserting Ver’s commitment to fulfilling his U.S. tax obligations. Skarlatos emphasized that Ver had relied on reputable tax professionals to ensure accurate reporting of his Bitcoin holdings, suggesting that any discrepancies were unintended.
Ver’s journey in the cryptocurrency realm began in 2011 when he started accumulating bitcoins. His enthusiastic promotion of Bitcoin propelled him into the spotlight, earning him the nickname “Bitcoin Jesus.” However, in a significant turn of events in 2014, Ver renounced his U.S. citizenship and obtained citizenship in St. Kitts and Nevis. This decision, prosecutors argued, had substantial tax implications.
The process of renouncing U.S. citizenship triggers a “constructive sale” of the individual’s property, subjecting any gains from the transaction to taxation. Allegations against Ver suggested that he provided misleading information to a law firm assisting him with tax-related matters, particularly regarding the valuation of his companies and bitcoins. As a result, the law firm prepared tax returns that undervalued Ver’s assets and failed to disclose his ownership of bitcoins.
The indictment further alleged that Ver later sold the bitcoins held by his companies for approximately $240 million in 2017. However, he purportedly neglected to fulfill tax obligations arising from these transactions, resulting in the Internal Revenue Service (IRS) being deprived of $48 million in taxes from 2014 to 2017.
The Justice Department disclosed its intention to pursue Ver’s extradition to the United States to face the charges levied against him. As legal proceedings progress, Ver’s case underscores the intricate legal landscape surrounding cryptocurrency investments and taxation, shedding light on the importance of compliance and transparency in the evolving digital asset ecosystem.
