Bitcoin Investor Roger Ver Arrested in Spain on Tax Fraud Charges
Roger Ver, Early Bitcoin Investor, Arrested in Spain on Tax Fraud Charges
Roger Ver, an early investor in Bitcoin-related startups known as “Bitcoin Jesus,” has been arrested in Spain and charged with tax fraud. The U.S. Department of Justice announced that an indictment was unsealed charging Ver with mail fraud, tax evasion, and filing false tax returns. Ver was arrested over the weekend in Spain based on the U.S. criminal charges.
US Authorities Seeking Extradition
The next steps will involve the U.S. applying to extradite Ver to stand trial in America. Authorities estimate that Ver allegedly caused a loss to the Internal Revenue Service (IRS) of at least $48 million. The IRS Criminal Investigation’s cybercrimes unit is still investigating the case.
Ver, widely known as “Bitcoin Jesus,” renounced his U.S. citizenship and obtained citizenship in St. Kitts and Nevis. Originally from Santa Clara, California, Ver owned several U.S.-listed businesses such as MemoryDealers.com and Agilestar.com. In 2011, Ver allegedly began acquiring Bitcoins for himself and his companies.
Ver Accused of Selling Thousands of Bitcoins for $240M Profit
The indictment alleges that in November 2017, Ver sold tens of thousands of bitcoins on cryptocurrency exchanges for approximately $240 million in cash. Despite giving up his U.S. citizenship, Ver was still legally required to report to the IRS and pay tax on certain distributions, such as dividends from his U.S. corporations.
The U.S. Department of Justice stated that Ver was required under U.S. law to file tax returns reporting capital gains from the sale of his worldwide assets, including the Bitcoins, and pay an “exit tax” on capital gains.
This arrest of the prominent figure in the cryptocurrency world has sent shockwaves through the industry, raising questions about tax compliance and regulations in the digital currency space.
