Bitcoin Jesus Indicted for Tax Fraud and False Returns; Spanish Arrest Sparks Scrutiny

"Bitcoin Jesus" Roger Ver has been arrested in Spain for allegedly filing false tax returns, causing a loss of at least $48 million to the IRS. The cryptocurrency community has reacted strongly to the arrest, suspecting foul play and an agenda against individuals who support the cryptocurrency ecosystem. According to the indictment, Ver provided false information about his Bitcoin holdings to a law firm and an appraiser, resulting in fraudulently undervalued tax returns.

"Bitcoin Jesus" Indicted for Tax Fraud and False Returns, Spanish Arrest Prompts Scrutiny

Madrid, Spain - In a bombshell indictment unsealed by the US Department of Justice (DoJ), Roger Ver, also known as "Bitcoin Jesus," has been charged with multiple counts of mail fraud, tax evasion, and filing false tax returns. The Spanish authorities apprehended Ver on April 29, 2024, at the behest of the US government, which seeks his extradition to stand trial in the United States.

The indictment alleges that Ver, the founder and former CEO of MemoryDealers.com Inc. and Agilestar.com Inc., concealed his Bitcoin holdings and misrepresented the value of his companies to evade taxes. The charges stem from Ver's expatriation to St. Kitts and Nevis in 2014, which requires US citizens to file tax returns and pay an "exit tax" on their worldwide capital gains.

According to the DoJ, Ver provided false information to a law firm and an appraiser to undervalue his companies and Bitcoins. This resulted in a tax return that significantly underestimated his tax liability, costing the Internal Revenue Service (IRS) at least $48 million in lost revenue.

Ver's arrest and subsequent extradition proceedings have ignited a firestorm of reactions within the cryptocurrency community. Many believe that Ver has been unfairly targeted due to his pro-Bitcoin views and his outspoken advocacy for the cryptocurrency ecosystem.

David Schwartz, the Chief Technology Officer (CTO) of Ripple Labs, expressed concern over the potential bias against Ver. In a recent post reviewed by Crypto News Flash, Schwartz asserted that the US authorities prioritize the prosecution of two types of crimes: heinous major offenses and actions committed by individuals they dislike.

"I don't think Roger would have had any moral qualms with evading taxes if he thought he could get away with it," Schwartz said. "But he certainly valued being able to sleep at night. That's likely why he left the United States."

Other prominent figures in the cryptocurrency industry echoed Schwartz's sentiments. Vitalik Buterin, the co-founder of Ethereum, tweeted that the charges against Ver are "ridiculous" and that the US government is "trying to make an example of him."

The Spanish authorities are currently holding Ver in custody while they process the extradition request from the US government. If extradited, Ver faces a lengthy trial and the potential for substantial prison time if convicted.

The case of "Bitcoin Jesus" has once again highlighted the complex intersection of cryptocurrency and taxation. As the regulatory landscape for digital assets continues to evolve, individuals and businesses must navigate a complex web of laws and regulations to avoid costly consequences.