Roger Ver Faces Indictment Over Allegations of Tax Fraud

Details of the Allegations

Ver, a prominent early investor in Bitcoin and now an advocate for Bitcoin Cash (BCH), is accused of not filing tax returns related to the sale of assets and evading an “exit tax” on his capital gains. This follows his renouncement of U.S. citizenship, after which he established businesses and obtained citizenship in St. Kitts and Nevis. In November 2017, it is alleged that Ver sold tens of thousands of Bitcoins, turning a profit of approximately $240 million.

Legal Obligations and Accusations

Despite his non-U.S. citizen status at the time of the sale, Ver was still legally obligated to report and pay taxes to the IRS, particularly on distributions like dividends from U.S.-based companies Memory Dealers and Agilestar. However, according to the Department of Justice, Ver did not disclose to his accountant that he had received and subsequently sold bitcoins from these companies. Consequently, his 2017 individual tax return reportedly failed to declare any gains or pay taxes on these transactions.

Previous Legal Issues and Public Statements

This is not Ver’s first brush with the law; he has previously served time after pleading guilty to selling explosives on eBay. His latest social media update cryptically states: “Don’t expect bad people to do good things,” which now hangs over his current legal battles as a poignant reflection of his predicaments.

Conclusion

As the case unfolds, the crypto community watches closely, given Ver’s significant influence and controversial past. The outcome could have broader implications for tax compliance and regulatory measures within the cryptocurrency space.