• Early bitcoin investor Roger Ver has been arrested and charged with alleged mail fraud, tax evasion, and filing false tax returns
• Ver is accused of concealing bitcoin ownership from the U.S. Internal Revenue Service, causing a purported loss of $48 million
• The indictment alleges that in 2017, Ver sold tens of thousands of bitcoins worth around $240 million in cash without reporting the gains or paying taxes on them
Roger Ver, an early investor in Bitcoin, has been arrested and charged with alleged tax fraud by the US Department of Justice. Ver was a major player in the early days of Bitcoin and earned the nickname “Bitcoin Jesus” for his evangelism for the cryptocurrency. However, his legal troubles may tarnish his reputation in the crypto community.
Background on Roger Ver
Roger Ver was an early adopter of Bitcoin, investing heavily in the cryptocurrency and related startups starting around 2011. At one point, he held over 300,000 Bitcoins. Ver was the CEO of MemoryDealers, one of the first companies to accept Bitcoin as payment. He also founded Bitcoin.com and served as its CEO.
In 2014, Ver renounced his US citizenship and became a citizen of Saint Kitts and Nevis. He was based in Japan for several years but recently relocated to Saint Kitts.
Details of the Charges Against Ver
According to the indictment, Ver is charged with one count of mail fraud, one count of tax evasion, and one count of filing false tax returns.
The DOJ alleges that Ver concealed his Bitcoin holdings from the IRS, causing a tax loss of over $48 million. Specifically, the indictment claims that two of Ver’s companies held approximately 70,000 Bitcoins as of June 2017. Ver then allegedly took control of those coins and sold tens of thousands of them for $240 million in cash later that year.
Despite not being a US citizen in 2017, Ver was still required to pay US taxes on distributions from his American companies. However, he allegedly hid the Bitcoin sales and underreported his income to the IRS.
Ver’s Response
At the time of writing, Ver does not appear to have publicly responded to the charges. He was arrested in Spain over the weekend and may be extradited to the US to face the charges. If convicted, he could face up to 25 years in prison.
The charges represent a dramatic turn for Ver, once considered one of the biggest champions of Bitcoin. It serves as a reminder that the crypto industry does not exist outside the law. Ver’s legal troubles may damage his reputation and influence going forward.
