Brief Overview:

•Roger Ver, known as “Bitcoin Jesus,” was charged with $48 million in tax fraud.

•Facing charges of mail fraud, tax evasion and filing a false return.

•Arrested in Spain, US seeks extradition; also sued by Genesis and CoinFex.

Roger Ver is now facing serious legal challenges for his early and enthusiastic support of Bitcoin. A recent indictment charges him with mail fraud, tax evasion, and filing false tax returns.

As the allegations became public, Spanish authorities arrested Ver, and the United States is currently seeking his extradition.

Why Roger Ver is facing charges for Bitcoin tax evasion

Ver, a former Santa Clara, Calif., resident who owns MemoryDealers.com Inc. and Agilestar.com Inc., which sell computers and networking equipment, began buying bitcoins around 2011 for personal and commercial purposes.

However, his legal problems escalated after he renounced his U.S. citizenship in 2014, after previously acquiring citizenship of St. Kitts and Nevis, and as a result, he was required to report capital gains from his global assets, including 131,000 bitcoins valued at about $871 at the time.

According to the indictment, Ver allegedly provided false information to his legal and tax advisors, causing his tax returns to significantly understate his assets. By 2017, Ver allegedly controlled and sold approximately 70,000 bitcoins, valued at approximately $240 million, transactions he failed to report to the IRS. This oversight allegedly resulted in at least $48 million in tax losses.

“Although Ver was no longer a U.S. citizen, he was still required by law to report to the IRS and pay taxes on certain distributions, such as dividends from MemoryDealers and Agilestar, both of which are U.S. corporations,” the Justice Department wrote.

Additionally, Ver’s financial activities have led to other legal challenges. For example, crypto lending company Genesis sued him for failing to settle $20.8 million worth of crypto options trades. Similarly, Seychelles-based exchange CoinFex also took legal action against Ver for his unsettled $47 million margin debt.

The cryptocurrency industry has also witnessed other major legal actions. On April 30, Binance founder Changpeng Zhao (CZ) also faced a court trial.

Zhao was sentenced to four months in prison after pleading guilty to violating the Bank Secrecy Act. Although he could have been sentenced to three years in prison, his cooperation with authorities significantly reduced his sentence. In addition, he must pay a $50 million fine.

These cases highlight the growing scrutiny and regulatory challenges facing the cryptocurrency industry. They underscore the importance of complying with financial regulations and tax laws, which are becoming increasingly important as the digital asset space continues to grow. #税务欺诈 #比特币逃税指控