Popularly known as “Bitcoin Jesus,” Roger Ver has been arrested in Spain on charges of causing a minimum loss of $48 million to the IRS through alleged deliberate actions of filing false tax returns. The United States is expected to seek his extradition for trial, and the crypto community suspects that this is due to his ideology.
Ver, the owner of two companies specializing in computer and networking equipment, accumulated Bitcoins since 2011 and became a prominent promoter of the technology, earning him the nickname “Bitcoin Jesus.” In 2014, he renounced his US citizenship and obtained citizenship in St. Kitts and Nevis, which required him to file tax returns under US laws. These returns were supposed to include capital gains from the sale of his assets worldwide and indicate their fair market values.
Additionally, Ver was required to pay an “exit tax” on these capital gains. According to the US Department of Justice, his companies owned around 131,000 Bitcoins at that time, with each token trading for $871. However, Ver allegedly provided false information to his law firm and appraiser, leading to an undervaluation of the companies and the Bitcoins owned. Despite this, his companies continued to hold 70,000 Bitcoins until June 2017, when most of them were sold for $240 million in cash. The investigation revealed that Ver violated tax laws and caused a loss of at least $48 million to the IRS.
Contrary to expectations, the crypto community has strongly reacted to Ver’s arrest, suspecting a hidden agenda against individuals who support the cryptocurrency ecosystem. Ripple Lab’s CTO, David Schwartz, believes that Ver was targeted due to his ideology. He shared a conversation he had with a Bitcoin OG, stating that US authorities only take two types of crimes seriously: big, serious crimes and crimes committed by individuals they dislike. Schwartz personally believes that Ver is a genuine and kind person, although he acknowledges that Ver may have evaded taxes.
Overall, Ver’s arrest has raised concerns and sparked debate within the crypto community, with many questioning the motivations behind his prosecution.