Roger Ver, a well-known figure in the crypto community and popularly referred to as “Bitcoin Jesus,” has been arrested in Spain for allegedly causing a loss of at least $48 million to the IRS by filing false tax returns. It is expected that the US authorities will seek his extradition to stand trial in the United States. This arrest has sparked reactions within the crypto community, with many suspecting that Ver is being targeted due to his ideology.
The indictment, which was unsealed on April 29, 2024, reveals that Ver owned two companies, MemoryDealers.com Inc. and Agilestar.com Inc., which specialized in selling computers and networking equipment. He began accumulating Bitcoins (BTC) for himself and his companies in 2011 and became a prominent promoter of the emerging technology, earning him the nickname “Bitcoin Jesus.”
In February 2014, Ver renounced his US citizenship and reportedly obtained citizenship in St. Kitts and Nevis through a process called expatriation. However, under US laws, he was still required to file tax returns and pay an “exit tax” on his capital gains. According to the US Department of Justice, Ver’s companies owned around 131,000 Bitcoins at the time of his expatriation, with each token trading for $871. However, Ver allegedly provided false information to his law firm and appraiser, concealing the actual number of Bitcoins owned by himself and his companies.
As a result, the law firm filed a tax return that undervalued the companies and did not report Ver’s personal ownership of Bitcoin. Despite this, Ver’s companies continued to hold 70,000 Bitcoins until June 2017, when he sold most of them for $240 million in cash. An investigation revealed that Ver had violated tax laws and caused a loss of at least $48 million to the IRS.
Despite the allegations, the crypto community has responded strongly, sensing a hidden agenda against individuals who advocate for the cryptocurrency ecosystem. Ripple Lab’s CTO, David Schwartz, believes that Ver was targeted due to his ideology. In a recent discussion, Schwartz stated that US authorities only take serious action against big, serious crimes or crimes committed by individuals they dislike. Schwartz personally believes that Ver is a genuine and kind person, though he acknowledges that Ver may have evaded taxes. He speculates that Ver’s decision to leave the United States was driven by his desire to sleep peacefully at night.
In conclusion, Roger Ver, also known as “Bitcoin Jesus,” has been arrested in Spain for allegedly causing a significant loss to the IRS through false tax returns. The crypto community suspects that Ver’s arrest is motivated by his ideological stance.