Roger Ver, a prominent early investor in bitcoin often referred to as “Bitcoin Jesus,” has reached a deferred prosecution agreement with the U.S. Department of Justice over federal tax charges related to his cryptocurrency holdings.
As part of the settlement, Ver paid nearly $50 million to the Internal Revenue Service (IRS) in back taxes, penalties, and interest. The charges stemmed from his failure to accurately report his bitcoin assets on tax returns following his expatriation from the United States in 2014. The government has now moved to dismiss the indictment against him.
According to details provided in the deferred prosecution agreement, Ver began acquiring bitcoins in 2011 and became well known for promoting digital currencies. In March 2014, after obtaining citizenship in St. Kitts and Nevis, he renounced his U.S. citizenship—a process that required him to file specific expatriation-related tax documents and pay capital gains taxes on all global assets, including bitcoin.
Ver admitted that when he filed these returns in May 2016, he failed to report all of his bitcoin holdings and did not pay the full capital gains tax owed on their constructive sale. This omission resulted in a loss of $16,864,105 to the United States. He acknowledged that this underreporting was willful—defined as an intentional violation of a known legal duty—and agreed he owed a penalty exceeding $12 million plus additional interest.
“Mr. Ver is accepting responsibility for his actions and has agreed to pay a substantial penalty,” said Acting United States Attorney Bill Essayli. “Every person, whether you’re a millionaire or not, is required by law to pay taxes and we will not hesitate to hold anyone accountable.”
“We are pleased that Mr. Ver has taken responsibility for his past misconduct and satisfied his obligations to the American public. This resolution sends a clear message: whether you deal in dollars or digital assets, you must file accurate tax returns and pay what you owe,” stated Associate Deputy Attorney General Ketan D. Bhirud.
“Today’s resolution demonstrates that there are consequences for those who intentionally conceal their assets and evade their tax obligations,” said Kareem Carter, Executive Special Agent in Charge of IRS Criminal Investigation. “No matter how sophisticated the technology or the asset, IRS-CI will continue to follow the money, ensure compliance, and protect the integrity of our tax system.”
The case was investigated by IRS Criminal Investigation’s Cyber Crimes Unit based at its Washington D.C. Field Office. Prosecution was handled by Assistant United States Attorney James C. Hughes from the Major Frauds Section alongside Assistant Chief Matthew J. Kluge and Trial Attorney Peter J. Anthony from the Tax Division.
