Pioneering Bitcoin Investor Roger Ver Detained on Charges of Tax Fraud

Roger Ver, an early backer of Bitcoin-related ventures known as “Bitcoin Jesus,” has been apprehended in Spain and is facing charges of tax fraud.

In a statement, the U.S. Department of Justice revealed that an indictment was unsealed, accusing Ver of mail fraud, tax evasion, and submitting false tax returns. Authorities confirmed that Ver was arrested this past weekend in Spain based on the criminal charges from the U.S.

U.S. Authorities Seeking Extradition of Ver

The forthcoming actions will include the U.S. seeking to extradite Ver to face trial in the United States. Officials estimate that Ver is alleged to have inflicted a loss of at least $48 million on the Internal Revenue Service (IRS). The IRS Criminal Investigation’s cybercrimes division continues to probe the matter.

Ver, widely recognized as “Bitcoin Jesus,” renounced his U.S. citizenship and acquired citizenship in St. Kitts and Nevis. Originally from Santa Clara, California, he owned multiple U.S.-listed companies, including MemoryDealers.com and Agilestar.com. In 2011, Ver reportedly began acquiring Bitcoins for himself and his businesses.

Ver Liquidated Thousands of Bitcoins, Realizing $240M Profit

The indictment claims that in November 2017, Ver sold tens of thousands of bitcoins on cryptocurrency exchanges for around $240 million in cash.

At that time, Ver had already renounced his U.S. citizenship; however, he was still legally obligated to report to the IRS and pay taxes on specific distributions, such as dividends from MemoryDealers and Agilestar, which are U.S. corporations.

The U.S. Department of Justice stated that under U.S. law, Ver was required to file tax returns that disclosed capital gains from the sale of his global assets, including the Bitcoins, and to pay an “exit tax” on those capital gains.

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