Early Bitcoin Investor, Roger Ver, Has Been Indicted For Tax Fraud
Roger Ver, an early cryptocurrency investor known as Bitcoin Jesus due to his fervent promotion of Bitcoin in its formative years, was recently arrested in Spain based on a U.S. indictment.
Ver Is Facing Very Serious Allegations
Some of Ver’s allegations include mail fraud, tax evasion, and filing false tax returns, allegedly to dodge over $48 million in U.S. taxes. This arrest is part of a larger effort by U.S. authorities to clamp down on questionable practices within the burgeoning cryptocurrency industry, which has seen other high-profile figures facing legal repercussions.
Among those recently affected by the U.S. crackdown is Changpeng Zhao, co-founder of Binance, the world’s largest cryptocurrency exchange, who was sentenced to four months in prison. Similarly, Sam Bankman-Fried, the former CEO of the FTX cryptocurrency exchange, received a 25-year prison sentence. These cases highlight the growing scrutiny of the ethical and legal standards in the crypto sector.
According to the indictment, Ver, who relinquished his U.S. citizenship in 2014 to become a citizen of St Kitts and Nevis, failed to report capital gains from his early Bitcoin investments which began in 2011. Despite his expatriation, U.S. tax laws required Ver to file tax returns that included gains from specific assets like Bitcoin, along with their fair-market values. By February 4, 2014, Ver and his companies reportedly owned approximately 131,000 Bitcoin.
The Legal Documents Allege That Ver Provided Misleading Information
The misleading information was sent to a law firm responsible for preparing his tax returns. This misinformation led to significantly undervalued tax filings for two of his companies, which were reported to hold only 73,000 Bitcoins and omitted any mention of Ver’s personal Bitcoin holdings. This manipulation of information has become a focal point in the charges against him.
Further complicating Ver’s legal situation, in November 2017, he sold tens of thousands of Bitcoins for about $240 million. This major transaction was not disclosed to his accountant, resulting in the Internal Revenue Service (IRS) missing out on at least $48 million in taxes, according to the indictment. The oversight on such a large sum emphasizes the scale of evasion Ver is accused of.
The announcement of the charges came from the Justice Department’s Tax Division and U.S. Attorney Martin Estrada for the Central District of California. The IRS Criminal Investigation’s cybercrimes unit is handling the investigation, reflecting the technical complexities involved in prosecuting crimes within the cryptocurrency domain.
Ver’s Influence In The Cryptocurrency World Goes Beyond Bitcoin
He has been a significant investor in other major crypto platforms, including Kraken and Blockchain.com. Initially a prominent supporter of Bitcoin, Ver’s relationship with the community soured following disagreements over proposed changes to Bitcoin’s network operations. These disagreements were significant enough to prompt Ver to shift his support to Bitcoin Cash, a spin-off from Bitcoin, in 2017—a decision he elaborated on in a book released earlier this year.
Social media reactions to Roger Ver’s arrest were decidedly mixed, reflecting a range of sentiments from the cryptocurrency community. Among the vocal critics was Dan Held, a former growth lead at Kraken, who expressed strong disapproval of Ver’s actions. Held accused Ver of jeopardizing his professional career and damaging his personal relationships through targeted attacks and public denunciations.
He also criticized Ver for significantly misrepresenting Bitcoin’s potential, claiming that Ver’s actions precipitated a deep-seated division within the Bitcoin community, often referred to as a “civil war.” Held’s comments underscored the contentious nature of the debate surrounding Ver’s influence on the cryptocurrency landscape.
As the legal process unfolds, the case against Roger Ver will likely serve as a significant precedent for how U.S. authorities handle similar cases in the crypto industry, especially those involving tax evasion and fraud.
The post Early Bitcoin Investor, Roger Ver, Has Been Indicted For Tax Fraud appeared first on Coinfomania.
