DOJ arrests early Bitcoin investor ‘Bitcoin Jesus’ Roger Ver on tax fraud charges

Roger Ver, a prominent early investor in Bitcoin and known as “Bitcoin Jesus,” has been indicted by the Department of Justice (DOJ) on charges of mail fraud, tax evasion, and filing false tax returns. Ver was arrested in Spain last weekend on suspicion of these crimes, and the United States plans to request his extradition for trial.

Just arrived: 🇺🇸 U.S. Department of Justice makes early arrests #Bitcoin Investor Roger Veron indicted on tax evasion charges pic.twitter.com/KdShrow0PS

— Bitcoin Magazine (@BitcoinMagazine) April 30, 2024

The indictment alleges that Ver, formerly of Santa Clara, California, owned and operated MemoryDealers.com Inc. and Agilestar.com Inc., which engaged in the sale of computer and networking equipment. Ver reportedly began acquiring Bitcoin for himself and his company in 2011, and by 2014 he had amassed a significant sum, totaling 131,000 Bitcoin, worth approximately $240 million.

Ver acquired St. Kitts and Nevis citizenship in 2014 and renounced his U.S. citizenship shortly thereafter through a process called deportation. The move subject him to U.S. tax laws, including reporting capital gains from the sale of assets around the world, including Bitcoin, and paying an “exit tax” on those gains.

The indictment alleges that Ver provided false or misleading information to law firms and appraisers while concealing the actual number of Bitcoins he and his company owned. This led to the preparation and submission of false tax returns that significantly underestimated the value of the company and its Bitcoin holdings.

As of 2017, Ver’s company still held about 70,000 bitcoins, which he reportedly sold for about $240 million on cryptocurrency exchanges. Even though he was not a U.S. citizen at the time, Ver still had a legal obligation to report to the IRS and pay taxes on certain dividends, and his failure to do so allegedly caused the IRS more than $48 million in losses, the indictment states. .

Acting Assistant Attorney General Stuart M. Goldberg and United States Attorney Martin Estrada announced the charges as the Cybercrimes Division of IRS Criminal Investigation handled the case. An indictment is an allegation, and all defendants are presumed innocent until proven guilty in a court of law.