Introduction to the Case

An early cryptocurrency evangelist once dubbed “Bitcoin Jesus” reached a tentative deal Tuesday with the U.S. Justice Department to pay nearly $50 million to resolve federal charges alleging he evaded tens of millions of dollars in taxes.

Background of the Case

Under the agreement, Roger Ver would pay the IRS $49.9 million in back taxes, penalties and interest stemming from his failure to report his bitcoin holdings on tax returns before renouncing his U.S. citizenship in 2014. He was arrested in Spain last year as prosecutors sought extradition.

The Journey to This Point

In January, Ver publicly appealed to President Donald Trump for help, claiming his case was politically motivated and said he faced a potential 100-year sentence.
Starting in 2011, Ver began acquiring bitcoins. Over the years, he avidly promoted them, and in March 2014, renounced his U.S. citizenship, according to papers filed in Los Angeles federal court.

Tax Obligations

Due to his net worth, Ver was required to file certain expatriation-related tax returns and to pay taxes on the capital gains on his worldwide assets, including his bitcoins. In the agreement, which still requires court approval, Ver admitted that when he filed his returns in May 2016, he did not report all his bitcoins and did not pay the required capital gains tax on their constructive sale, according to the DOJ.

Admission of Guilt

Ver admitted that his failure to report capital gains from the bitcoins caused a loss to the United States of more than $16.8 million, prosecutors said.
“Mr. Ver is accepting responsibility for his actions and has agreed to pay a substantial penalty,” Acting U.S. Attorney Bill Essayli said in a statement. “Every person, whether you’re a millionaire or not, is required by law to pay taxes, and we will not hesitate to hold anyone accountable.”

Conclusion

The case of Roger Ver, also known as “Bitcoin Jesus,” serves as a reminder of the importance of tax compliance, even for those involved in the cryptocurrency space. The significant payment of nearly $50 million to resolve the federal charges underscores the seriousness with which tax evasion is treated by the U.S. Justice Department.

FAQs

• Q: Who is Roger Ver?
  A: Roger Ver is an early cryptocurrency evangelist known as “Bitcoin Jesus” due to his avid promotion of bitcoins.
• Q: What was the nature of the charges against Roger Ver?
  A: The charges were related to tax evasion, specifically his failure to report his bitcoin holdings on tax returns and not paying the required capital gains tax.
• Q: How much did Roger Ver agree to pay to resolve the federal charges?
  A: He agreed to pay the IRS $49.9 million in back taxes, penalties, and interest.
• Q: Why was Roger Ver required to file certain tax returns and pay taxes on his worldwide assets?
  A: This was due to his net worth and the requirement to file expatriation-related tax returns after renouncing his U.S. citizenship in 2014.