‘Bitcoin Jesus’ Roger Ver fights indictment, alleging government overreach

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As a seasoned analyst with extensive experience in the crypto industry, I find myself intrigued by Roger Ver’s legal battle against the U.S. criminal indictment. Having followed his career from its early days, it is evident that Ver has been a pioneer and influential figure in the crypto space. His arrest in Barcelona and subsequent indictment on tax evasion charges come as no surprise given his high-profile status within the industry.

Roger Ver is disputing a U.S. legal accusation that claims he failed to pay over $240 million in taxes on his Bitcoin earnings.

In a recent development, Roger Ver, who was detained in Barcelona in April 2024, has made a request to discard the indictment against him. The U.S. Attorney for the Central District of California had previously accused him on eight counts, as reported by FOX Business, due to allegedly evading over $48 million in taxes. These charges were brought forth following his underreporting of Bitcoin holdings and other assets in 2014 while serving as CEO of Bitcoin.com. His legal team now contends that the indictment may have been influenced by government prejudice.

Ver’s motion to dismiss: Claims of attorney-client privilege violations

In simpler terms, Ver’s legal team argues that the Department of Justice improperly viewed private discussions between Ver and his lawyers (attorney-client communications) and failed to present crucial evidence to the grand jury. Ver asserts that he acted in a way any ordinary person would under similar circumstances, adhering to professional advice based on the scant regulations concerning cryptocurrencies available at the time.

Ver asserted that he expected to become a political focus of the Internal Revenue Service following his expatriation, maintaining his actions were legal. His defense team also points out that it was only after Ver’s relocation to Spain that the IRS began to provide clear guidelines on cryptocurrency taxes. This allowed for a more equitable assessment of Ver’s Bitcoin holdings, as their value was challenging to calculate due to the asset’s limited liquidity and significant price fluctuations at the time.

The indictment, revealed by the U.S Department of Justice earlier this year, claims that as early as June 2017, Ver’s two companies were reportedly still in possession of around 70,000 Bitcoins. Additionally, it is alleged that he owed a tax on those capital gains, known as an “exit tax.” By February 4, 2014, Ver and his companies were accused of owning approximately 131,000 Bitcoins, which were traded on significant exchanges for around $871 each. MemoryDealers and Agilestar were alleged to have held roughly 73,000 of those Bitcoins.

The legal case involving digital assets has garnered significant interest within the cryptocurrency community, with many criticizing the U.S. Department of Justice for their aggressive approach to regulating digital assets, particularly under the Biden administration. Critics like Robert Barnes, a civil rights attorney who backs Ver’s cause, argue that these charges exemplify selective enforcement. Barnes comments, “This is another instance of legal warfare against the cryptocurrency sector, focusing on individuals due to political motivations instead of concrete proof of misconduct.

The motion to dismiss that Ver has filed coincides with the U.S. preparing for a new administration, which many in the cryptocurrency sector view as more open to digital assets. Under the incoming administration of Trump, it’s anticipated that a less aggressive stance will be taken on cases such as Ver’s, particularly those perceived as politically motivated. Ver’s trial, scheduled for February 2025, is contingent upon extradition.

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2024-12-04 05:50