Roger Ver, an early Bitcoin investor, has been arrested and charged with mail fraud, tax evasion, and filing false tax returns. The U.S. Department of Justice announced charges against Ver for allegedly concealing Bitcoin ownership from the Internal Revenue Service (IRS), causing $48 million in losses.
The recently unsealed indictment lists three charges against Ver, who was arrested in Spain last weekend and faces possible extradition to the United States. According to the DOJ statement, Ver’s charges include concealing Bitcoin ownership and profiting by selling tens of thousands of Bitcoins on a cryptocurrency exchange for approximately $240 million in cash in November 2017.
Even though Ver was not a U.S. citizen at the time, he had a legal obligation to report certain dividends, such as dividends from U.S. companies in which he had ownership: MemoryDealers and Agilestar. However, he reportedly failed to disclose these dividends to the IRS, failing to report gains related to the dividends or pay taxes on his 2017 tax return.
Additionally, Ver was accused of using legal services to prepare and file false tax returns, understating two companies, concealing 73,000 BTC in Bitcoin holdings, and omitting personal Bitcoin ownership.
Burr, who obtained citizenship in St. Kitts and Nevis and then renounced his U.S. citizenship in 2014, previously lived in Santa Clara, California. Ver, known online as “Bitcoin Jesus,” is the former CEO of digital wallet developer Bitcoin.com.
The arrest and indictment of Roger Ver highlights the growing scrutiny individuals in the cryptocurrency industry are facing when it comes to tax compliance and financial transparency.
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