Roger Ver’s Legal Battle
Lawyers representing Roger Ver, famously known as “Bitcoin Jesus,” have recently requested a US judge to dismiss the indictment against him for tax evasion. This court filing marks the first major legal action taken by Ver since his arrest in Spain back in April. Ver’s case has garnered attention due to his prominent role in the cryptocurrency community and the serious nature of the allegations against him.
Background of the Indictment
In early 2023, Ver was charged by US prosecutors with significant tax offenses related to his financial activities. The core of the allegations is that he evaded more than $48 million in taxes derived from the sale of cryptocurrency valued at approximately $240 million. These events trace back to 2014 when Ver renounced his US citizenship. Following this, he allegedly failed to file a necessary “exit tax” return. This exit tax serves to ensure that individuals settling abroad fulfill their financial obligations to the US tax system before departure.
Current Status in Spain
Ver’s legal complications intensified after his arrest in Spain, where he currently awaits a judicial review of his possible extradition to the United States. His prominent contributions to the promotion of Bitcoin during its early stages earned him the moniker “Bitcoin Jesus,” and his current predicament raises questions about the intersection of cryptocurrency advocates and regulatory compliance.
Arguments from Ver’s Defense Team
In a recent session at the Los Angeles federal court, Ver’s legal team presented a strong defense against the allegations. They contended that the IRS’s exit tax for US expatriates holding assets exceeding $2 million is not only vague but also unconstitutional. Ver’s attorneys accused the prosecution of inappropriately interrogating one of Ver’s lawyers and disregarding evidence that illustrated their client had no intention of breaking tax laws. They noted, “The only potential government interest is raising revenue, and there are numerous less restrictive means through which that revenue can be generated.”
Prosecutors’ Claims on Concealment
The prosecution has taken a firm stance, claiming that Ver deliberately hid the extent of his Bitcoin assets from the IRS. According to the indictment, it is alleged that Ver concealed the true amount of Bitcoin he owned, both personally and through his business ventures, such as MemoryDealers and Agilestar. By June 2017, these companies reportedly held around 70,000 Bitcoin, and in November of that year, Ver purportedly seized control of these assets, executing sales that yielded approximately $240 million.
Dispute Over Value and Intent
Additionally, prosecutors assert that Ver worked alongside appraisers and firms to comply with his exit tax obligations but provided inaccurate information regarding his Bitcoin holdings. This led to a significant undervaluation on his 2017 exit tax return, omitting personal ownership of Bitcoin entirely. However, Ver’s defense team insists that the prosecution ignored substantial evidence indicating that he did not intend to violate US tax regulations.
Potential Consequences of Conviction
If convicted on all counts, the ramifications for Roger Ver could be severe. For each mail fraud charge, he may face up to 20 years in prison. Furthermore, tax evasion charges could lead to a maximum sentence of five years for each count, coupled with possible additional time for each false tax return filed, with penalties of up to three years per count. As Ver navigates this legal maze, his case continues to attract significant scrutiny and debate within and beyond the cryptocurrency community.