Bitcoin Jesus Roger Ver has been arrested in Spain on charges brought by the U.S Department of Justice. The indictment, unveiled after his arrest in Spain over the weekend, accuses the 45-year-old of mail fraud and tax evasion, alleging that he avoided paying a minimum of $48 million in taxes.
The U.S Supreme Court’s recent decision to dismiss an unnamed law firm’s appeal, related to contempt of a grand jury subpoena for records resembling Roger Ver’s circumstances, adds to the legal backdrop surrounding his case.
Ver’s lawyer, Bryan Skarlatos, expressed his dismay and astonishment at his arrest while he was traveling in Spain, stating, “I am very disappointed and surprised.”
“Mr. Roger Ver relied on leading tax professionals to help him report his Bitcoin and he always intended to fully comply with his U.S tax obligations,” Skarlatos said. “We look forward to establishing his innocence in court, if necessary.”
Roger Ver, who once served as the CEO of Bitcoin.com, a digital wallet developer, began accumulating bitcoins in 2011 and actively promoted the cryptocurrency, earning him the moniker “Bitcoin Jesus.”
In 2014, he relinquished his U.S citizenship after becoming a citizen of St. Kitts and Nevis, a move that prosecutors allege had tax implications for him.
Specifically, under federal tax law, when an individual renounces their citizenship, their assets are treated as if they were sold for their fair market value the day before renunciation, triggering a “constructive sale.” Any resulting gain must be reported in that tax year.
On the day he obtained citizenship in St. Kitts and Nevis, Ver, along with two of his companies, MemoryDealers.com and Agilestar.com, held approximately 131,0000 bitcoins, each valued at around $871 at the time, totaling over $114 million.
Prosecutors claim that Roger Ver enlisted a law firm to assist with his expatriation-related tax filings and to appraise the value of his companies. However, they allege that he provided the firm with false or misleading information regarding the extent of his cryptocurrency holdings.
