The Rise and Fall of a Crypto Evangelist
A former U.S. citizen, famously known as "Bitcoin Jesus" for his passionate advocacy of cryptocurrency, has struck a deal to pay the IRS nearly $50 million in back taxes to avoid a criminal prosecution. This agreement marks a dramatic turn in the case against Roger Ver, who once championed Bitcoin's potential.
From Silicon Valley to the Caribbean
Roger Ver previously operated two computer companies in Santa Clara but made a life-changing decision in 2014. He renounced his U.S. citizenship and relocated to St. Kitts and Nevis in the eastern Caribbean. At the time of his expatriation, Ver held approximately 131,000 Bitcoins, either personally or through his owned companies, with Bitcoin trading around $871 per coin. This move triggered an "exit tax" obligation on his capital gains under U.S. law.
Deception in the Expatriation Process
To navigate the expatriation, Ver enlisted a law firm for tax return preparation and an appraiser to value his companies. However, federal prosecutors allege that he provided false or misleading information by concealing the true extent of his Bitcoin holdings. In 2015, when the appraiser directly inquired about the number of Bitcoins he owned, Ver responded evasively, asking hypothetical questions like what would happen if he had 200,000 bitcoins at renunciation. His lawyer advised obtaining an independent appraisal, but Ver continued to obscure the details, discussing market conditions instead of providing clear numbers.
In an October 2015 email, Ver stated, "I actually have all the information you need to make it super easy for you. I would just need to explain it all, and then you would affix your name to it." By May 2016, he filed false tax returns that omitted the accurate Bitcoin count.
Massive Sales and Tax Evasion
By November 2017, Ver had sold tens of thousands of Bitcoins on cryptocurrency exchanges, amassing about $240 million in cash. Despite no longer being a U.S. citizen, he was still required to report these earnings and pay taxes because his companies were U.S. corporations. This led to a federal grand jury indicting him in April 2024 on charges including mail fraud, tax evasion, and filing false tax returns. At the time of indictment, Ver was living in Tokyo but was arrested in Spain.
Resolution and Statements
Under the agreement with the U.S. Attorney's Office, Ver will pay the back taxes, and the criminal charges are set to be dismissed. Acting U.S. Attorney Bill Essayli commented, "Mr. Ver is accepting responsibility for his actions and has agreed to pay a substantial penalty. Every person, whether you're a millionaire or not, is required by law to pay taxes and we will not hesitate to hold anyone accountable." Through his attorney, Ver expressed gratitude, saying, "I am very grateful this case has been dismissed and appreciate the Trump Administration's leadership and professionalism in working towards this final resolution. I am also grateful to everyone who supported me and sought justice in my case."
Comments
Join Our Community
Sign up to share your thoughts, engage with others, and become part of our growing community.
No comments yet
Be the first to share your thoughts and start the conversation!