US Department of Justice pursues Bitcoin Jesus Roger Ver for tax evasion charges in Spain due to "concealment of Bitcoin holdings"

Roger Ver, a prominent early advocate of Bitcoin known as "Bitcoin Jesus," has been charged with multiple offenses including email fraud, tax evasion, and providing false tax returns. These charges were made public after the unsealing of the indictment recently, and Roger Ver was arrested over the weekend in Spain.

Early Bitcoin Miner Faces Tax Evasion Charges, Known as "Bitcoin Jesus" for Advocacy Work

Roger Ver from Santa Clara, California, was an early adopter and vocal proponent of Bitcoin. Through his companies MemoryDealers.com Inc. and Agilestar.com Inc., Ver sold computer and network equipment and began accumulating Bitcoin as early as 2011. His influence in the cryptocurrency community was so significant that he earned the nickname "Bitcoin Jesus."

Renouncing Citizenship and Tax Obligations

According to the U.S. Department of Justice, court documents outline a pivotal moment in Roger Ver's life: on February 4, 2014, he obtained citizenship of Saint Kitts and Nevis and renounced his U.S. citizenship.

Under U.S. law, this action required Ver to accurately report global assets, including the amount of Bitcoin held, for capital gains tax purposes and pay an "expatriation tax." At the time of renouncing his citizenship, Ver and his companies reportedly held around 131,000 Bitcoins, each valued at $871.

Fraud Charges: Concealing Extensive Bitcoin Holdings

Prosecutors allege that Roger Ver sought professional help from a law firm and an appraiser to address tax obligations related to renouncing citizenship but concealed the actual extent of his Bitcoin wealth from them. This purportedly led to false tax filings, undervaluation of his company, and omission of personal Bitcoin holdings. By June 2017, it is alleged that Ver's company still held around 70,000 Bitcoins, which he gained control of and sold by the end of 2017, yielding approximately $240 million.

Renouncing Citizenship Does Not Relieve Tax Obligations

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, resulting in unreported income and unpaid taxes for 2017. It is estimated that Ver's actions caused at least $48 million in losses to the Internal Revenue Service.

U.S. Justice Pursues Far-reaching Investigation, Celebrities in the Spotlight

This case was actively pursued by the Internet Crimes Unit of the IRS and prosecuted by the Tax Division of the Department of Justice and senior officials in the Central District of California. As the legal battle unfolds, Roger Ver initially presumed innocent was later found guilty.

The consequences of this case could be far-reaching, impacting perceptions of the legal complexities surrounding cryptocurrency and the responsibilities of its advocates. This high-profile prosecution not only highlights the intricate connection between cryptocurrency and tax obligations but also serves as a stark reminder of the legal consequences of financial negligence and tax evasion.