The cryptocurrency world was rocked this weekend as Roger Ver, a key figure in the early days of Bitcoin, was arrested in Spain on charges of mail fraud, tax evasion, and filing false tax returns. Ver, known as “Bitcoin Jesus” for his early advocacy of the digital currency, is facing serious legal trouble for his alleged actions.
According to the Department of Justice, Ver, who was based in Santa Clara, California, owned and operated companies involved in selling computer and networking equipment. He began acquiring bitcoins in 2011 and amassed a significant amount by 2014, totaling around 131,000 bitcoins valued at approximately $240 million.
In a surprising move, Ver obtained citizenship in St. Kitts and Nevis in 2014 and renounced his U.S. citizenship, subjecting himself to U.S. tax laws. The indictment alleges that Ver provided false information to conceal the true number of bitcoins owned by him and his companies, resulting in the filing of false tax returns that undervalued the companies and their bitcoin holdings.
By 2017, Ver’s companies still held around 70,000 bitcoins, which he allegedly sold on cryptocurrency exchanges for $240 million. Despite not being a U.S. citizen at the time, Ver was obligated to report to the IRS and pay taxes on certain distributions, which he allegedly failed to do, causing a loss to the IRS estimated at over $48 million.
The charges were announced by Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Martin Estrada, with the IRS Criminal Investigation’s cybercrimes unit handling the case. Ver is innocent until proven guilty in court, but the allegations against him have sent shockwaves through the cryptocurrency community. Stay tuned for updates on this developing story.
