TLDR
Roger Ver faces indictment for allegedly evading $240 million in taxes from Bitcoin sales
Ver was arrested in Barcelona in April 2024 and released on $160,000 bail
His holdings included approximately 131,000 bitcoins valued at $871 each in February 2014
Ver’s legal team filed a motion to dismiss, citing unclear regulations and government misconduct
The case coincides with an expected shift in crypto policy under the incoming Trump administration
Roger Ver, an early Bitcoin adopter known as “Bitcoin Jesus,” is fighting back against criminal charges that claim he evaded $240 million in taxes from Bitcoin sales. Ver, who was arrested in Barcelona in April 2024, has filed a motion to dismiss the indictment while currently free on $160,000 bail in Spain.
The U.S. Attorney for the Central District of California brought eight counts against Ver, focusing on alleged tax evasion of over $48 million. The charges stem from Ver’s alleged underreporting of Bitcoin holdings and other assets in 2014, when he held the position of CEO at Bitcoin.com.
According to the unsealed indictment, Ver’s companies owned approximately 70,000 bitcoins by June 2017. Earlier, in February 2014, Ver and his companies allegedly controlled about 131,000 bitcoins, which traded around $871 each on major exchanges. Two companies, MemoryDealers and Agilestar, reportedly held about 73,000 of these bitcoins.
Ver’s defense team has raised several key points in their motion to dismiss. They argue that the Department of Justice improperly accessed confidential communications between Ver and his attorneys. Additionally, they claim the government failed to present important evidence to the grand jury.
The legal team emphasizes that Ver acted reasonably by following professional advice, given the limited guidance available for cryptocurrency taxation at the time. They point out that clear IRS directions on crypto-taxes only emerged after Ver’s move to Spain.
In their motion, Ver’s attorneys describe ongoing discussions with the DOJ that they characterize as “good-faith” negotiations. However, they allege the government secretly obtained an indictment while pretending to maintain interest in these negotiations.
The defense highlights the challenge of determining fair market value for Bitcoin holdings during the period in question, citing the cryptocurrency’s low liquidity and price volatility at the time. This technical difficulty, they argue, made accurate tax reporting particularly challenging.
Ver’s legal representatives argue that the existing tax framework lacked clear guidance for both average taxpayers and tax experts. This regulatory uncertainty, they contend, made it especially difficult to determine the boundaries of criminal liability in cryptocurrency cases.
The case has drawn attention from the crypto community, with some viewing it as part of a broader enforcement pattern. Civil rights attorney Robert Barnes, who supports Ver’s position, describes the case as an example of “lawfare” against the cryptocurrency industry.
Ver himself has stated that he anticipated becoming a political target for the IRS following his expatriation. He maintains that his actions complied with the law as it existed at the time.
The timing of Ver’s motion coincides with an upcoming change in U.S. administration. Many in the cryptocurrency industry expect the incoming Trump administration to take a different approach to digital asset regulation and enforcement.
The DOJ’s indictment focuses specifically on Ver’s alleged failure to pay taxes on approximately $240 million worth of Bitcoin sales in 2017. It also addresses claims that he underreported his Bitcoin holdings’ value when renouncing his U.S. citizenship in 2014.
Ver’s attorneys argue that the government continues to selectively quote and incorporate documents that undermine its case. They also claim these actions violate Ver’s attorney-client privilege.
The case remains pending in Spain, where authorities must decide on Ver’s extradition to the United States. If extradited, Ver faces trial in February 2025.
Recent court filings show Ver’s legal team requesting the court to end the prosecution, citing evidence they claim the government withheld from the grand jury. They argue this evidence demonstrates fundamental fairness and due process violations in obtaining and prosecuting the indictment.
