The entire cryptocurrency market was rocked by another big news event yesterday. Roger Ver, the man dubbed ‘Bitcoin Jesus,’ was just handed a collection notice for bad karma. Yesterday, the U.S. Department of Justice issued a press release with an indictment against Roger Ver. Ver is charged with mail fraud, tax evasion, and filing false tax returns. The IRS claims he owes $50 million. Additionally, the DOJ said they arrested Ver in Spain over the weekend.
From Tech Entrepreneur to Crypto Crusader
Once a poster boy of the Bitcoin (BTC-USD) boom, Ver’s journey from tech entrepreneur to crypto crusader has hit a snag. Or, let’s say, a massive legal iceberg. He began his tech crusade with MemoryDealers.com Inc. and Agilestar.com Inc., cozy little setups dealing in computer and networking gear. But in 2011, Ver was bitten by the Bitcoin bug. He was hoarding coins like a squirrel preps for winter, amassing about 131,000 Bitcoins when they were worth around $871 each.
Fast forward to 2014, and Ver, perhaps seeking a slice of paradise, snagged citizenship in St. Kitts and Nevis and waved goodbye to his American passport. Though, here’s where the plot thickens: ditching Uncle Sam comes with a hefty price tag—an “exit tax” on those juicy capital gains from his global assets, including his Bitcoin stash.
Legal Loopholes or Larceny?
Allegedly, Ver got crafty. He roped in a law firm and an appraiser to tidy up his tax affairs. But instead of playing it straight, he’s accused of playing them like a fiddle. The charge? Feeding them understated figures that made his Bitcoin treasure trove look more like a piggy bank. This maneuver supposedly led to filing tax returns that severely undervalued his companies and the Bitcoin they held.
Fast forward to 2017, and Ver had weak hands. He reportedly liquidated tens of thousands of those Bitcoins for about $240 million. Despite his expatriate status, the IRS still wanted a piece of that pie because, surprise, those profits came from good ol’ American companies. Allegedly, Ver kept this little transaction under wraps from his accountant.
If the feds’ story holds water, Ver owes the IRS to the tune of at least $48 million. Bitcoin Jesus probably should have heeded the words of Jesus Himself, “Render unto Caesar what is Caesar’s, and unto God what is God’s.”
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