Bitcoin Pioneer Roger Ver Charged with Mail Fraud and Tax Evasion, Faces $48 Million Loss
ICARO Media Group
The agency announced the charges in a press release, revealing that Ver, often referred to as "Bitcoin Jesus," had allegedly evaded nearly $50 million in taxes.
Ver, who gained his nickname around 2010 due to his generous practice of gifting bitcoins, hails from California but renounced his U.S. citizenship in 2014 after obtaining a passport from St. Kitts and Nevis. While Ver publicly presented his decision as a protest against U.S. government policies, the move was widely seen within the crypto community as an attempt to escape tax obligations on his substantial Bitcoin holdings, accumulated when the cryptocurrency was still valued at just a few dollars or less.
Despite his renunciation of U.S. citizenship, the Justice Department argues that Ver was still obligated to pay an "exit tax" and file returns disclosing his capital gains and asset values. However, an IRS indictment filed in Los Angeles alleges that Ver collaborated with a law firm to avoid reporting his personal holdings and undervalue 73,000 bitcoins owned by his companies. Moreover, the indictment claims that Ver sold tens of thousands of Bitcoin in 2017, netting approximately $240 million.
The Justice Department stated, "In total, Ver is alleged to have caused a loss to the IRS of at least $48 million." This substantial loss underscores the severity of the charges brought against him.
Reportedly detained in Spain by U.S. authorities, Ver's arrest took the online crypto community known as Crypto Twitter by surprise. The announcement has drawn attention to several other individuals who rose to prominence during Bitcoin's early days and have since encountered legal troubles.
As the legal proceedings unfold, the case against Roger Ver marks another chapter in the evolving narrative surrounding cryptocurrencies and taxation. It serves as a reminder that even those at the forefront of the digital currency movement are not exempt from accountability when it comes to fulfilling their tax obligations.
Disclaimer: The information provided in this article is derived solely from the facts mentioned in the Justice Department's press release and related sources.