Roger Ver, known as “Bitcoin Jesus,” has been indicted on charges including mail fraud, tax evasion, and filing false tax returns. The indictment, filed on February 15, 2024, alleges that Ver renounced his U.S. citizenship in 2014 and failed to report capital gains from bitcoins owned by his companies, MemoryDealers.com, Inc., and Agilestar.com, Inc. Prosecutors claim that Ver provided false information to his law firm when preparing expatriation-related tax returns.
Ver, who began acquiring bitcoins in 2011, allegedly concealed the true number of bitcoins owned by himself and his companies from tax authorities. Despite not being a U.S. citizen, prosecutors allege that Ver failed to report and pay taxes on distributions, such as dividends, from his U.S. corporations. According to court documents, Ver sold tens of thousands of bitcoins in 2017 for approximately $240 million and failed to report any gain or pay tax on those transactions. Prosecutors allege that Ver’s actions caused the IRS a loss of at least $48 million.
Following an investigation by the IRS Criminal Investigation’s cybercrimes unit, Ver was arrested in Spain based on the U.S. criminal charges. The U.S. will seek Ver’s extradition to face trial in the U.S. Ver’s attorney, Bryan C. Skarlatos, has stated that they are disappointed and surprised by the arrest and believe that Ver intended to comply with his tax obligations with the assistance of tax professionals.
Before his arrest, Ver posted on social media platform X, hinting at what was to come. His account, verified on X, has close to 3/4 million followers. Ver recently released a book, “Hijacking Bitcoin: The Hidden History of BTC,” co-written with Robert Patterson, promising to unveil the hidden history of BTC. Ver’s arrest has triggered responses from his followers, some expressing support and others awaiting the court proceedings to establish his innocence.
The indictment against Ver raises questions about tax compliance and reporting obligations related to cryptocurrency transactions. As the case unfolds, it highlights the challenges faced by individuals with substantial cryptocurrency holdings and the importance of accurate reporting and payment of taxes. Ver’s case also underscores the increasing scrutiny on cryptocurrency-related activities by law enforcement agencies, as they seek to address potential tax evasion and fraud within the sector. Ver’s trial in the U.S. will likely shed light on the complexities of navigating tax laws in an evolving digital financial landscape.
