A federal grand jury has indicted Roger Ver, an early investor in Bitcoin known as the “Bitcoin Jesus,” on charges of mail fraud and tax evasion. Ver was arrested this weekend in Spain based on these charges, and the United States is seeking his extradition to stand trial.
The indictment alleges that Ver, a former resident of California, owned two companies selling computer equipment. Beginning in 2011, he acquired Bitcoin for himself and his companies while actively promoting the cryptocurrency.
In an alleged attempt to evade taxes, Ver renounced his U.S. citizenship in 2014 through expatriation. He subsequently obtained citizenship in St. Kitts and Nevis. However, U.S. law still required him to disclose and pay taxes on capital gains from his global assets, including the Bitcoin holdings.
Revelation of Alleged Tax Evasion by Roger Ver
According to prosecutors, Ver provided false or misleading information to his legal representatives and appraisers about the value of his companies and Bitcoin assets. As a result, they accuse him of filing false tax returns that significantly undervalued his holdings, evading substantial tax obligations to the IRS.
The indictment claims Roger Ver’s actions caused a loss of at least $48 million in taxes owed to the IRS. He still legally had to report and pay taxes on certain distributions from his U.S.-based companies, including dividends, despite no longer being a U.S. citizen after 2014. Prosecutors allege that Ver concealed his companies’ receipt and sale of Bitcoin. He failed to report the associated capital gains and pay the required profit taxes.
Though he renounced his U.S. citizenship, Ver faced obligations under U.S. tax laws. Prosecutors claim he intentionally understated his wealth and cryptocurrency holdings to avoid paying legitimate taxes.
Authorities arrested the man dubbed the “Bitcoin Jesus” in Spain this weekend based on the mail fraud and tax evasion charges brought by the federal grand jury indictment. The United States has initiated proceedings to extradite Roger Ver to stand trial.
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