Roger Ver, a well-known advocate for Bitcoin in its early days and often referred to as the “Bitcoin Jesus,” has been charged with multiple offenses including email fraud, tax evasion, and providing false tax returns. These charges were made public after the unsealing of the indictment, and Roger Ver was arrested over the weekend in Spain.
Contents:
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Accused of Tax Evasion, a Prominent Early Bitcoin Advocate
Renouncing Citizenship and the Tax Dilemma
Fraud Charges: And a Whole Lot of Bitcoin
Renouncing Citizenship, Yet Still Obligated to Pay Taxes
The Far-Reaching Scope of US Justice Pursuit, with Celebrities at the Forefront
Roger Ver, hailing from Santa Clara, California, is an early adopter and active promoter of Bitcoin. Through his companies, MemoryDealers.com Inc. and Agilestar.com Inc. (which sell computer and networking equipment), Ver began accumulating Bitcoin in 2011. His influence in the cryptocurrency community was so significant that he earned the nickname “Bitcoin Jesus.”
According to the US Department of Justice, the indictment details major turning points in Roger Ver’s life. On February 4, 2014, he became a citizen of Saint Kitts and Nevis and subsequently renounced his US citizenship.
Under US law, this action required Roger Ver to submit accurate reports of worldwide assets (including the amount of Bitcoin held) for capital gains tax purposes and pay an “exit tax” on these earnings. At the time of renouncing his citizenship, Ver and his companies reportedly held approximately 131,000 Bitcoins, valued at $871 each.
Prosecutors allege that Roger Ver sought professional help from a law firm and an appraiser to navigate the tax obligations associated with renouncing citizenship, but he concealed the actual extent of his Bitcoin wealth from them. This allegedly resulted in false tax returns, undervaluing his company, and omitting personal Bitcoin holdings. By June 2017, Ver’s company reportedly still held around 70,000 Bitcoins, which he gained control of and sold by the end of 2017, resulting in approximately $240 million in revenue.
Despite renouncing his US citizenship, Roger Ver still has tax reporting and payment obligations related to specific financial activities involving his US companies. The indictment accuses him of concealing these transactions from his accountants, leading to unreported income and unpaid taxes in 2017. It is estimated that Ver’s actions caused a loss of at least $48 million to the US Internal Revenue Service.
This case has been actively pursued by the Internet Crime Unit of the US Internal Revenue Service and prosecuted by the Tax Division of the Department of Justice and senior officials in the Central District of California. As the legal battle unfolds, Roger Ver is presumed innocent until proven guilty.
The consequences of this case could have far-reaching effects, impacting the perception of the complexities of cryptocurrency law and the responsibilities of its advocates. This high-profile indictment not only highlights the intricate relationship between cryptocurrency and tax obligations but also serves as a stark reminder of the legal consequences of financial negligence and tax evasion.
Roger Ver
Bitcoin Jesus
Tax Evasion
Further reading
Bitcoin Jesus, Early Investor Roger Ver Arrested, Charged with Tax Evasion Exceeding $48 Million
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