Roger Ver, an early prominent investor in bitcoin and known as “bitcoin Jesus,” has been charged by the Department of Justice (DOJ) with mail fraud, tax evasion, and filing false tax returns. Ver was arrested over the weekend in Spain on these criminal charges, and the United States intends to request his extradition to stand trial.
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ONLY IN: US JUSTICE DEPARTMENT ARRESTS EARLY twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin INVESTOR ROGER VER, ACCUSED OF TAX EVASION pic.twitter.com/KdShrow0PS
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1785379846425616800?ref_src=twsrc%5Etfw”>April 30, 2024
The indictment alleges that Ver, formerly of Santa Clara, California, owned and operated MemoryDealers.com Inc. and Agilestar.com Inc., both involved in the sale of computer and networking equipment. Beginning in 2011, Ver allegedly began acquiring bitcoins for himself and his companies, accumulating a significant amount in 2014, totaling around 131,000 bitcoins worth approximately $240 million.
Ver then obtained citizenship in St. Kitts and Nevis in 2014 and renounced his U.S. citizenship shortly after, in a process known as expatriation. This action subjected him to US tax laws, including reporting capital gains from the sale of his assets around the world, including bitcoin, and paying an “exit tax” on those gains.
He bitcoin-investor-charged-tax-fraud”>accusation alleges that Ver provided false or misleading information to a law firm and an appraiser, concealing the true amount of bitcoins he and his companies own. This resulted in the preparation and filing of false tax returns that significantly undervalued the companies and their bitcoin holdings.
In 2017, Ver's companies still held approximately 70,000 bitcoins, which he allegedly sold on cryptocurrency exchanges for around $240 million. Despite not being a U.S. citizen at the time, Ver was still legally required to report to the IRS and pay taxes on certain distributions, which he allegedly failed to do, causing a loss to the IRS estimated at more than $48 million, according to the indictment.
Acting Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Martin Estrada announced the charges, and the IRS Criminal Investigation cybercrime unit took over the case. An indictment is an accusation and all defendants are presumed innocent until proven guilty in court.
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