Roger Ver, an early investor in Bitcoin-related startups, has been arrested in Spain and charged with tax fraud. Known as “Bitcoin Jesus,” Ver was charged with mail fraud, tax evasion, and filing false tax returns. The U.S. Department of Justice announced that an indictment had been unsealed, stating that he had caused a loss to the Internal Revenue Service of at least $48 million. Ver was arrested in Spain based on these charges, and the next step will involve the U.S. government applying to extradite him to stand trial in America.
Ver, originally from Santa Clara, California, renounced his U.S. citizenship and obtained citizenship in St. Kitts and Nevis. He owned several U.S.-listed businesses, such as MemoryDealers.com and Agilestar.com. According to the indictment, Ver started acquiring Bitcoins for himself and his companies in 2011. In November 2017, he allegedly sold tens of thousands of Bitcoins on cryptocurrency exchanges for approximately $240 million in cash. Despite giving up his U.S. citizenship at that time, he was still legally required to report to the IRS and pay taxes on certain distributions like dividends from his U.S. corporations.
The IRS Criminal Investigation’s cybercrimes unit is currently investigating the case against Ver. Under U.S. law, he was required to file tax returns reporting capital gains from the sale of his worldwide assets, including Bitcoins, and pay an “exit tax” on capital gains. Ver allegedly failed to comply with these tax requirements, resulting in the charges against him. The U.S. Department of Justice estimates that Ver’s actions caused a significant financial loss to the IRS, which has led to his arrest and impending extradition to the United States.
Ver’s arrest and charges highlight the increasing scrutiny and regulation of cryptocurrency-related activities by government authorities around the world. As digital currencies like Bitcoin grow in popularity and value, regulators are working to ensure that individuals and businesses involved in these markets comply with tax laws and regulations. Ver’s case serves as a cautionary tale for others in the cryptocurrency space, emphasizing the importance of adhering to tax obligations and legal requirements to avoid facing similar consequences.
The allegations against Ver also raise questions about the role of governments in regulating and monitoring cryptocurrencies, which are known for their decentralized and anonymous nature. As lawmakers and regulators seek to bring digital currencies under existing financial regulations, cases like Ver’s serve as a reminder of the potential legal risks and consequences of non-compliance. The outcome of Ver’s trial and potential extradition could have broader implications for the cryptocurrency industry and its participants, shaping the future of how digital assets are taxed and regulated by governments worldwide.
