Feds Charge “Bitcoin Jesus” With $48 Million Tax Fraud

Roger Ver, a prominent early investor in bitcoins known as the "Bitcoin Jesus," has been apprehended in Spain on charges of evading taxes amounting to at least $48 million in the United States, the U.S. Department of Justice disclosed on Tuesday.

The arrest follows an indictment filed in federal court in Los Angeles, unsealed after Ver's detention over the weekend in Spain.

The charges against Ver include mail fraud and tax evasion, marking a significant legal development in the ongoing scrutiny of cryptocurrency-related financial activities.

Ver, 45, who once served as the chief executive of Bitcoin.com, had been actively involved in promoting bitcoins since 2011, earning him the moniker "Bitcoin Jesus."

However, his legal troubles stem from allegations that he renounced his U.S. citizenship in 2014 after becoming a citizen of St. Kitts and Nevis, a move that prosecutors assert had tax implications.

Prosecutors claim that Ver provided false or misleading information to tax professionals regarding his cryptocurrency holdings and the valuation of his companies, MemoryDealers.com and Agilestar.com.

Consequently, tax returns were allegedly filed undervaluing these assets, depriving the Internal Revenue Service (IRS) of significant tax revenue.

According to the indictment, Ver, along with his two companies, held approximately 131,000 bitcoins valued at over $114 million at the time of his citizenship renunciation.

It further alleges that Ver failed to pay taxes on distributions from these companies and deprived the IRS of $48 million in taxes between 2014 and 2017.

In response to Ver's arrest, his lawyer, Bryan Skarlatos, expressed disappointment and surprise, asserting Ver's intention to comply with U.S. tax obligations and vowing to establish his innocence in court if necessary.

The Justice Department intends to pursue Ver's extradition, signalling the continuation of legal proceedings in a case that underscores the regulatory challenges posed by the burgeoning cryptocurrency industry.