Roger Ver, an early bitcoin investor often referred to as "Bitcoin Jesus," has entered into a deferred prosecution agreement with the U.S. Department of Justice to settle federal tax charges. Ver has paid nearly $50 million in back taxes, penalties, and interest to the IRS due to his failure to accurately report his bitcoin holdings on tax returns after expatriating from the United States in 2014.
The agreement states that Ver began acquiring bitcoins in 2011 and promoted them extensively, earning him the nickname "Bitcoin Jesus." In March 2014, he renounced his U.S. citizenship after becoming a citizen of St. Kitts and Nevis. As part of this process, known as expatriation, he was required to file specific tax returns and pay taxes on capital gains from his global assets, including bitcoins.
Ver admitted that when he filed these returns in May 2016, he did not report all his bitcoins or pay the necessary capital gains tax on their constructive sale. This omission resulted in a loss of $16,864,105 to the United States. He acknowledged that his failure to report was willful and agreed to pay over $12 million in penalties under 26 U.S.C. § 6663, along with interest.
Associate Deputy Attorney General Ketan D. Bhirud said: "We are pleased that Mr. Ver has taken responsibility for his past misconduct and satisfied his obligations to the American public." Acting United States Attorney Bill Essayli added: "Mr. Ver is accepting responsibility for his actions and has agreed to pay a substantial penalty."
Kareem Carter from the IRS Criminal Investigation highlighted: "Today’s resolution demonstrates that there are consequences for those who intentionally conceal their assets and evade their tax obligations." The Cyber Crimes Unit of IRS Criminal Investigation’s Washington, D.C., Field Office conducted the investigation.
The case was prosecuted by Assistant Chief Matthew J. Kluge and Trial Attorney Peter J. Anthony of the Tax Division, along with Assistant U.S. Attorney James C. Hughes from the Central District of California.
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