Renowned early Bitcoin investor Roger Ver, often referred to as “Bitcoin Jesus,” has been arrested in Spain on allegations of dodging at least $48 million in U.S. taxes, as announced by the U.S. Department of Justice. The charges, including mail fraud and tax evasion, were detailed in an indictment from a federal court in Los Angeles, which came to light following his arrest last weekend.
The Indictment Details
Ver, 45, faced arrest during his travels in Spain. The indictment connects to an earlier Supreme Court decision which involved a law firm held in contempt for not complying with a grand jury subpoena related to a client, subsequently revealed to be Ver.
His attorney, Bryan Skarlatos, expressed shock and disappointment at the arrest, asserting Ver’s reliance on professional tax advisors and his intent to comply with U.S. tax laws. Skarlatos emphasized their readiness to prove Ver’s innocence in court.
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Bitcoin Ventures and Tax Implications
Ver, who once led Bitcoin.com as CEO, started investing in Bitcoin in 2011 and became a prominent promoter of the cryptocurrency. His significant involvement earned him his nickname. In a major life decision in 2014, Ver renounced his U.S. citizenship after obtaining citizenship in St. Kitts and Nevis, triggering significant tax repercussions under U.S. law, which treats such expatriation as a “constructive sale” of property.
At the time of his renunciation, Ver and his companies held an extensive portfolio of approximately 131,000 bitcoins, valued then at over $114 million. The indictment accuses him of providing misleading information to the law firm responsible for his tax preparations, resulting in undervalued tax returns and unreported personal bitcoin holdings.
Legal Consequences and Proceedings
Following his significant bitcoin sales in 2017, which netted about $240 million, Ver allegedly evaded taxes on profits gained through his companies. The total tax evasion is estimated to have cost the IRS $48 million from 2014 to 2017. The U.S. Justice Department is now seeking Ver’s extradition to face these charges.
