In a significant development within the cryptocurrency community, Roger Ver, an early investor in bitcoin, has been charged by the US Department of Justice (DOJ) with multiple charges, including mail fraud, tax evasion, and filing of false tax returns.
Roger Ver's alleged tax evasion revealed
According to the bitcoin-investor-charged-tax-fraud” target=”_blank” rel=”noopener nofollow”>accusationVer owned and operated companies such as MemoryDealers.com Inc. and Agilestar.com Inc., which specialized in the sale of computer and networking equipment.
Ver is accused of acquiring bitcoin for himself and his companies in 2011, amassing a significant fortune in the cryptocurrency.
To evade taxes, Ver allegedly renounced his US citizenship in 2014 through a process known as expatriation, subsequently obtaining citizenship in St. Kitts and Nevis. However, US law required him to disclose and pay capital gains taxes on his global assets, including the bitcoin he owned.
US prosecutors seek extradition
The indictment further alleges that Ver provided false or misleading information to his legal representatives and appraisers, understating the value of his companies and his bitcoin holdings. Consequently, he is accused of filing false tax returns that significantly undervalued his assets, evading significant tax obligations.
Prosecutors claim Roger Ver's actions caused a loss of at least $48 million to the IRS. Even though he was no longer a U.S. citizen, he was legally required to report and pay taxes on certain distributions, including dividends, from his U.S.-based companies.
However, Ver allegedly concealed the receipt and sale of bitcoin held by his companies, without reporting the associated profits or paying the required taxes.
Roger Ver, the “bitcoin Jesus”, has been detained in Spain, where he was arrested on the above charges. As a result, the United States seeks his extradition to stand trial.
Featured image from Bloomberg, chart from TradingView.com
