“Bitcoin Jesus” Arrested on Fraud Charges: Early Investor Faces Extradition to U.S.
Roger Ver, once known as “Bitcoin Jesus” for his early investments in the cryptocurrency, is now facing serious charges of fraud. The 45-year-old was arrested in Spain over the weekend and is accused of three counts of mail fraud, two counts of tax evasion, and three counts of subscribing to a false tax return.
Ver, who was an early adopter of Bitcoin and heavily promoted it online, renounced his U.S. citizenship in 2014 and obtained citizenship in St. Kitts. However, the Department of Justice alleges that he failed to report his assets and capital gains from the sale of Bitcoin, leading to a loss of at least $48 million to the IRS.
Despite no longer being a U.S. citizen, Ver was still required to report his transactions and pay taxes on certain distributions because his companies were U.S. corporations. The DOJ claims that he transferred and sold tens of thousands of bitcoins in 2017, netting himself around $240 million, but failed to report any gains or pay taxes on the transactions.
If convicted, Ver could face a maximum sentence of 20 years in federal prison for each mail fraud count, up to five years for each tax evasion count, and up to three years for each count of subscribing to a false tax return. The case is still under investigation by the IRS.
Ver’s story serves as a cautionary tale for those involved in the cryptocurrency world, where regulations and tax obligations are still evolving. Today, a single Bitcoin is worth more than $60,000, making it more important than ever for investors to ensure they are compliant with the law.
