Roger Ver, known in the crypto community as “Bitcoin Jesus,” has been detained in Spain from the United States on suspicion of tax evasion amounting to at least $48 million. The US Department of Justice confirmed that Ver, 45, faces charges of mail fraud and tax evasion, and the indictment was made public following his arrest in Los Angeles federal court last weekend.
Details emerged last year when the U.S. Supreme Court rejected an appeal from an unnamed law firm that had been held in contempt for failing to comply with a grand jury subpoena, which had sought records related to a client presumably named Ver.
Brian Skarlatos, Barr's legal representative, expressed shock and disappointment at the arrest, saying, “Mr. Barr relied on top tax professionals to report his Bitcoin transactions and fully intended to comply with his U.S. tax obligations. ” Skarlatos is confident that he will be able to prove Barr's innocence in court if necessary.
Who is Bitcoin Jesus?
Ver, who was previously CEO of Bitcoin.com, was an early Bitcoin adopter and prominent supporter of the cryptocurrency, earning the nickname after being a staunch Bitcoin advocate since 2011.
Renunciation of U.S. Citizenship
His legal woes began after he renounced his U.S. citizenship in 2014 and acquired citizenship of St. Kitts and Nevis, which prosecutors argue has significant tax implications under U.S. law.
According to U.S. tax law, renouncing citizenship triggers a “material sale,” meaning assets are deemed to have been sold at market value on the day before the citizenship was relinquished. At the time of the citizenship switch, Ver and his companies, MemoryDealers.com and Agilestar.com, held approximately 131,000 bitcoin, valued at approximately $114 million at the time.
Tax return issues
Prosecutors allege that Barr, with the assistance of a law firm, filed tax returns related to his deportation that significantly under-reported his assets. They also accuse Barr of acquiring approximately 70,000 bitcoins from his own company in 2017 and then selling them for approximately $240 million without paying taxes on those transactions.
The indictment relates to tax evasion activities between 2014 and 2017, during which the IRS reportedly lost $48 million in taxes. The Department of Justice is currently seeking Barr's extradition to face these charges. The case highlights the ongoing legal and regulatory challenges surrounding cryptocurrencies and taxation.
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