Roger Ver, known to some as “Bitcoin Jesus” for his early and passionate promotion of Bitcoin, faces serious charges including mail fraud, tax evasion, and filing false tax returns, as revealed by a recent indictment unsealed by the U.S. Public Affairs office. Ver was apprehended over the weekend in Spain, where he now faces potential extradition to the United States to stand trial for these charges.
The indictment details a complex scenario beginning in 2011, when Ver, originally from Santa Clara, California, allegedly started accumulating significant amounts of Bitcoin through his businesses, MemoryDealers.com Inc. and Agilestar.com Inc., which specialized in computer and networking equipment sales. By early 2014, Ver reportedly gained St. Kitts and Nevis citizenship and subsequently renounced his U.S. citizenship, a move that requires one to declare and pay taxes on global assets under U.S. law.
Despite these legal obligations, Ver allegedly misled legal and tax professionals, providing them with falsified data that underreported his substantial Bitcoin holdings. According to authorities, Ver and his companies possessed about 131,000 bitcoins valued at approximately $871 each by February 2014. However, tax documents prepared by his representatives reportedly failed to accurately reflect these assets, leading to significantly undervalued tax returns.
The situation escalated in 2017 when Ver allegedly took direct control over approximately 70,000 bitcoins from his companies and secretly sold them for around $240 million. The U.S. authorities claim that despite these enormous transactions, Ver’s 2017 tax return failed to disclose any gains or pay the necessary taxes, leading to a reported IRS loss of at least $48 million.
This case, investigated by the IRS Criminal Investigation’s cybercrimes unit, demonstrates the challenges and legal implications of crypto holdings with antiquated laws around taxation. The Justice Department’s Tax Division, along with various U.S. attorneys, is leading the prosecution, highlighting the vigor with which the U.S. government is treating allegations of tax evasion related to cryptocurrency specifically.
Other Allegations
Roger Ver was a Seed Investor in Shapeshift alongside Barry Silbert, faces tax fraud charges, according to the DOJ Criminal Division. These charges emerge amid allegations that link Shapeshift to controversial cryptocurrency operations, including the infamous Mt. Gox exchange. Shapeshift, which was reportedly established as a cleaner alternative to Mt. Gox following its catastrophic collapse, finds itself under scrutiny.
Further complicating the narrative, allegations from TruthLabs suggest a murky past connected to significant cryptocurrency scandals. According to their reports, stolen funds from the Mt. Gox heist were allegedly used to purchase a vast amount of Ethereum during its ICO in July 2014, making the unnamed entities behind this move major Ethereum stakeholders.
Shapeshift is accused of profiting over $10 million from the CoinRail exploit, with its founder, Erik Voorhees, allegedly implicated in dealings amounting to over $1 billion in various exploits, excluding the Mt. Gox theft. Serious allegations that further complicate prominent figures in this situation.
Block Size Wars
Roger Ver became a contentious figure during the Bitcoin block size wars, a fierce debate within the Bitcoin community concerning the size of blocks within the blockchain. Ver supported increasing the block size to improve transaction processing speeds and overall scalability, a stance that put him at odds with traditionalists who favored maintaining the original block size to preserve decentralization and security.
This ideological split led to significant discord and eventually contributed to the creation of a hard fork from Bitcoin, resulting in the formation of Bitcoin Cash in 2017. Ver’s advocacy for larger blocks and his subsequent support for Bitcoin Cash marked a critical moment, which some claim caused a schism in the open source community.
Community Reaction
This arrest has been met with significant attention and concern within the community, with some drawing parallels to other high-profile legal cases such as that of Ross Ulbricht, the founder of Silk Road. Jeremy Kauffman, former CEO of LBRY, took to social media to express his support for Ver.
Kauffman emphasized that few have risked as much for the cause of liberty as Ver has, indicating the depth of his involvement and commitment to the crypto movement. He expressed solidarity with Ver, signaling this as a moment of significant concern for the community that goes beyond just one individual’s legal troubles to what this signifies for the broader struggle around digital freedom and regulation.
Dan Held tweeted that Ver’s legal troubles were “good” news, suggesting that Ver has been a “net negative for Bitcoin.” This opinion starkly contrasts with the foundational values many in the community hold regarding decentralization and resistance to traditional financial regulations.
Jeremy Kauffman responded to Held’s tweet, reflecting a sense of disillusionment with the current state of the Bitcoin community. Kauffman’s comment hints at a broader sentiment that the original ideals of Bitcoin, such as autonomy, privacy, and detachment from established financial systems, are being overshadowed by newer participants who may prioritize different values.
Erik Voorhees, another influential figure in the space, chimed in with a direct rebuke of Held’s take, calling it “despicable.” Voorhees’ response underscores the contentious nature of the debate within the community, where the principles of liberty and justice remain highly contested.
The pseudonymous admin of Bitcoin.org, known as Cobra, has publicly expressed his sentiments regarding the recent legal troubles of Roger Ver, a prominent Bitcoin advocate often referred to as “Bitcoin Jesus.” Despite past personal differences highlighted by Cobra, mentioning that Ver wasn’t kind to him in his latest book, he extends a gesture of goodwill, wishing Ver the best amidst his challenging circumstances.
Cobra’s statement underscores a significant recognition of Ver’s contributions to the Bitcoin community, suggesting that his influential role and the moniker “Bitcoin Jesus” were not accorded lightly, reflecting the substantial impact Ver has had on the digital currency’s proliferation and adoption.
Additionally, Cobra’s tweet sends a broader message of solidarity, emphasizing that “everyone who loves freedom is supporting you.” This sentiment echoes a prevalent theme within the community, which often rallies around figures who champion personal liberty and resist heavy-handed regulatory interventions.
As the legal process unfolds, Ver remains innocent until proven guilty. However, this case serves as a critical reminder of the tax responsibilities that come with the ownership and transfer of cryptocurrencies, particularly in the U.S. It could also signal a general attack on early Bitcoin investors.
Author Profile
- Lucy Walker covers finance, health and beauty since 2014. She has been writing for various online publications.
Latest entries
- April 25, 2025Global EconomicsWhistleblowers Unmask Schwab’s Toxic WEF Secrets
- April 9, 2025Global EconomicsTariff Tensions Drive Market Volatility
- March 18, 2025Global EconomicsRed in Name Only: Labour’s War on the UK Working Class
- March 7, 2025SatoshiCraig Wright Banned from UK Courts with Civil Restraint Order