“Bitcoin Jesus” Roger Ver Arrested in Spain on U.S. Tax Evasion Charges
The “Bitcoin Jesus” Falls: Early Bitcoin Investor Roger Ver Arrested in Spain for Tax Evasion
Roger Ver, a prominent early investor in bitcoins known as the “Bitcoin Jesus,” has been arrested in Spain on U.S. charges of evading at least $48 million in taxes, the U.S. Department of Justice announced on Tuesday.
Ver, 45, was charged with mail fraud and tax evasion in an indictment filed in federal court in Los Angeles. The charges were unsealed following his arrest in Spain over the weekend.
The U.S. Supreme Court had dismissed an unnamed law firm’s appeal last year over court orders holding it in contempt for not releasing records related to a client matching Ver’s description.
Ver’s lawyer, Bryan Skarlatos, expressed disappointment and surprise at his client’s arrest while traveling in Spain. Skarlatos stated that Ver had relied on tax professionals to report his Bitcoin holdings and had always intended to comply with his U.S. tax obligations.
Ver, who once served as the CEO of Bitcoin.com, began acquiring bitcoins in 2011 and actively promoted the cryptocurrency, earning him the nickname “Bitcoin Jesus.”
In 2014, Ver renounced his U.S. citizenship after becoming a citizen of St. Kitts and Nevis, which prosecutors said had tax consequences for him. When someone renounces their citizenship, their property is treated as having been sold for its fair market value the day before, resulting in tax obligations.
Prosecutors alleged that Ver provided false or misleading information about his cryptocurrency holdings to a law firm preparing his expatriation-related tax returns. This led to an undervaluation of his companies and bitcoins, resulting in $48 million in unpaid taxes from 2014 to 2017.
Ver later sold 70,000 bitcoins owned by his companies for about $240 million in 2017 but failed to pay the taxes owed on the distributions from those sales.
The Justice Department intends to seek Ver’s extradition to the United States to face the charges.
The arrest of the “Bitcoin Jesus” has sent shockwaves through the cryptocurrency community, raising questions about tax compliance and accountability in the digital asset space.
