The U.S. Department of Justice has formally charged Roger Ver, an early Bitcoin investor famously dubbed 'Bitcoin Jesus,' with evading $48 million in taxes. This development follows Ver's arrest in Spain, with the United States now seeking his extradition to face multiple criminal charges, including tax evasion, mail fraud, and filing false tax returns.
Ver, who renounced his U.S. citizenship in 2014 to become a citizen of St. Kitts and Nevis and later a Japanese citizen, has been a controversial figure in the cryptocurrency world. His legal troubles began to surface publicly when the DOJ claimed that Ver failed to accurately report his income from 131,000 bitcoins he owned in 2014. At that time, Bitcoin was valued at approximately $871 per unit. As of the latest trading prices, these assets would surpass $7.5 billion in value.
The indictment details that the evasion occurred during Ver's expatriation process, a period when U.S. law required him to pay an exit tax. According to the DOJ, Ver underreported his bitcoin holdings during this critical tax filing. Despite his expatriation, he allegedly continued to underreport his income and evade U.S. taxes on his bitcoin profits.
This case gains complexity considering Ver's significant role within the cryptocurrency community. Known for his early advocacy and substantial investments in Bitcoin, Ver earned his nickname for his evangelistic promotion of the digital currency. His 2011 investments turned lucrative by 2013, a tale he famously recounted to CNBC, adding to his legendary status within the crypto circles.
The arrest has sparked a wide range of reactions from the cryptocurrency community, many of whom view the U.S. government's actions as disproportionately aggressive. Critics argue that the charges against Ver are a targeted attack due to his political beliefs and his criticisms of U.S. policies. Supporters like Kim Dotcom and Jane Adams have publicly defended Ver, describing the legal actions as a "witch hunt" against an individual who has openly opposed U.S. foreign policies.
Conversely, some within the crypto community have expressed support for the DOJ's actions. Dan Held, a noted Bitcoin enthusiast, described Ver as having been a "net negative" for the cryptocurrency, particularly criticizing Ver's shift in stance against Bitcoin BTC later in his career.
Ver's legal issues underscore the growing scrutiny of cryptocurrency-related activities by U.S. authorities. As digital currencies become more mainstream, the IRS and other regulatory bodies have intensified efforts to track and prosecute financial crimes involving crypto assets. The IRS's use of "clustering analysis" to track blockchain transactions and identify tax evasion schemes highlights this increasing sophistication.
