Early Bitcoin Investor 'Bitcoin Jesus' Arrested in Spain, Faces U.S. Extradition for Alleged $48 Million Tax Evasion

Roger Ver, an early Bitcoin investor known as 'Bitcoin Jesus,' has been arrested in Spain and faces extradition to the United States on charges of tax evasion and mail fraud. The U.S. Department of Justice claims that Ver avoided nearly $50 million in taxes by failing to report capital gains from the sale of approximately 70,000 bitcoins for $240 million in 2017.

According to the indictment, Ver gave up his U.S. citizenship in 2014 and obtained a passport from St. Kitts and Nevis, which was widely seen as an effort to avoid paying taxes on his substantial Bitcoin holdings. Despite not being a U.S. citizen at the time, Ver was still legally required to report and pay taxes on certain distributions, including dividends from U.S. corporations and capital gains from the Bitcoin sale.

The Justice Department alleges that Ver worked with a law firm to underreport his personal holdings and the value of 73,000 bitcoins owned by his companies, MemoryDealers and Agilestar. Ver allegedly provided false or misleading information to understate the value of his companies and Bitcoin holdings, resulting in filing false tax returns and avoiding at least $48 million in taxes.

Why this matters: The arrest of Roger Ver, a prominent figure in the early days of Bitcoin, highlights the ongoing efforts by U.S. authorities to address tax evasion and fraud in the cryptocurrency industry. This high-profile case emphasizes the importance of complying with tax obligations, even for those who have given up their U.S. citizenship.

Ver, who was previously sentenced to 10 months in prison in 2002 for selling explosives on eBay, became a prominent promoter of Bitcoin after discovering the cryptocurrency in 2011. He later turned into the main proponent of the controversial Bitcoin Cash fork. Following his arrest in Spain, Ver is now expected to be extradited back to the U.S. to face charges.

Key Takeaways

• Roger Ver, known as "Bitcoin Jesus," arrested in Spain for tax evasion.
• Ver accused of failing to report $240M in capital gains from Bitcoin sales.
• Ver renounced U.S. citizenship in 2014 but still required to pay taxes.
• Ver allegedly underreported personal holdings and Bitcoin company values.
• Arrest highlights U.S. efforts to address crypto-related tax evasion and fraud.