In a major development, Roger Ver, an early investor in bitcoins and a prominent figure in the cryptocurrency world, has been arrested in Spain based on criminal charges filed by the United States government. An indictment, which was unsealed yesterday, charged Ver with several offenses including mail fraud, tax evasion, and filing false tax returns.

According to the indictment, Ver, formerly of Santa Clara, California, owned two companies, MemoryDealers.com Inc. and Agilestar.com Inc., which specialized in selling computer and networking equipment. Starting in 2011, Ver allegedly began accumulating bitcoins for both himself and his companies, enthusiastically promoting the digital currency and even earning the nickname "Bitcoin Jesus."

However, in February 2014, Ver allegedly obtained citizenship in St. Kitts and Nevis and subsequently renounced his U.S. citizenship through a process known as expatriation. As a result, Ver was required by U.S. law to file tax returns that accurately reported capital gains from the sale of his worldwide assets, including bitcoins, and to pay taxes on those gains. Nonetheless, the indictment alleges that Ver provided false information to his law firm and appraiser, resulting in false tax returns that significantly undervalued his companies and the bitcoins they owned.

The indictment also claims that by June 2017, Ver's companies still held approximately 70,000 bitcoins, which he later sold on cryptocurrency exchanges in November 2017 for a staggering sum of approximately $240 million. Despite no longer being a U.S. citizen at the time, Ver was legally obligated to report and pay taxes on certain distributions, such as dividends, from his U.S. corporations. However, he allegedly concealed this information, leading to his 2017 individual tax return reporting no gain or tax payment related to the distribution of bitcoins from his companies.

The indictment asserts that Ver's actions have caused a loss to the Internal Revenue Service (IRS) of at least $48 million, triggering a significant investigation by the IRS Criminal Investigation's cybercrimes unit.

Authorities have announced their intention to seek Ver's extradition to the United States for trial. The arrest in Spain marks a significant development in this high-profile case, which will be prosecuted by Assistant Chief Matthew J. Kluge and Trial Attorney Peter J. Anthony from the Justice Department's Tax Division, along with Assistant U.S. Attorney James C. Hughes for the Central District of California.

This case highlights the increased scrutiny and enforcement actions surrounding cryptocurrency transactions and tax evasion. The government's determination to hold Ver accountable sends a clear message that individuals involved in the cryptocurrency industry must comply with tax laws and regulations.

The Office of Public Affairs at the U.S. Department of Justice has been actively involved in providing updates on the case.