"Bitcoin Jesus" early investor Roger Ver arrested, charged with tax evasion of over $48 million

The latest statement from the U.S. Department of Justice (DOJ) indicates that Roger Ver, an early Bitcoin investor known as "Bitcoin Jesus," has been charged with email fraud, tax evasion, and submitting falsified tax returns, with an alleged tax evasion amount exceeding $48 million. Currently, Ver has been arrested in Spain on these criminal charges and is facing extradition back to the United States for trial.

"Bitcoin Jesus" Accused of Tax Evasion

According to a complaint filed on February 15 and unsealed on April 29, Roger Ver, widely known as "Bitcoin Jesus" for his early investments in Bitcoin Cash (BCH) and Bitcoin (BTC), has been charged with email fraud, tax evasion, and submitting falsified tax returns.

As per a press release from the Department of Justice, Ver was arrested by Spanish authorities over the weekend based on the U.S. criminal charges, with U.S. officials seeking his extradition to face trial in the United States.

Possessing Over 131,000 Bitcoins

The statement outlined that Ver, a former resident of California, U.S., was the former CEO of the cryptocurrency wallet developer Bitcoin.com, and the computer and networking equipment vendors MemoryDealers and Agilestar.

Between 2011 and 2014, Ver acquired a substantial amount of Bitcoin in his own name and on behalf of his companies, ultimately renouncing his U.S. citizenship in 2014:

As of 2014, Roger Ver and his companies MemoryDealers and Agilestar held over 131,000 Bitcoins, with the two companies holding approximately 73,000 of them, each valued at around $871.

It was noted that "as part of the expatriation tax, Ver was required by law to report to the authorities his global assets, including Bitcoin, and the capital gains obtained upon their sale."

Reportedly, the U.S. expatriation tax is levied on individuals relinquishing U.S. citizenship to tax their income and assets before exiting the U.S. tax system.

The Department of Justice stated that even though Ver was not a U.S. citizen at the time, he still had a legal obligation to report and pay taxes to the Internal Revenue Service (IRS) of the United States.

Concealing Bitcoin Income, Falsifying Tax Filings

However, the complaint revealed that Ver concealed from his accountant and the financial departments of his two companies the fact that he and the companies held tens of thousands of Bitcoins:

In his personal income tax return for June 2017, Ver did not report any information regarding income related to Bitcoin for himself, MemoryDealers, or Agilestar.

It wasn't until November 2017 that Ver sold tens of thousands of Bitcoins on a cryptocurrency exchange for around $240 million without reporting it to the IRS:

Ver also falsely undervalued the two companies, resulting in at least $48 million in lost tax revenue for the IRS.

Roger Ver: "Don't Expect Bad People to Do Good Things"

Prior to this, Roger Ver was also involved in the financial crisis of the exchange CoinFlex in 2022, where he was accused of owing tens of millions of dollars.

"Bitcoin Jesus" Roger Ver Accused of Owing Millions, Leading to CoinFLEX Suspending Withdrawals and Fundraising

As the case has unfolded over the past two months, Roger Ver recently posted a cryptic tweet on social media:

Don't expect bad people to do good things.

“Don’t expect bad people to do good things”

— Roger Ver (@rogerkver) April 25, 2024