‘Bitcoin Jesus’ Roger Ver fights indictment and accuses U.S. government of overreach

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As a seasoned analyst with extensive experience in the financial sector and a keen interest in the evolving world of cryptocurrencies, I find myself intrigued by the ongoing saga of Roger Ver and his tax indictment. Having followed the developments in this space for years, it’s clear that the landscape has been fraught with regulatory uncertainties, making it a challenging environment for even the most experienced players.

Roger Ver is contesting a U.S. criminal indictment accusing him of evading $240 million in taxes from Bitcoin sales.

Roger Ver, who got arrested in Barcelona in April 2024, has submitted a petition to throw out the accusation against him. The U.S. Attorney for the Central District of California indicted him on eight charges, as reported by FOX Business, due to allegedly evading over $48 million in taxes. These charges came after the previous CEO of Bitcoin.com was said to have underreported his BTC holdings and other assets in 2014. Currently, Ver’s legal team claims that the indictment was biased by governmental 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 unjustifiably breached confidential discussions between attorney and client, and failed to disclose crucial evidence to the grand jury. Ver maintains that he acted in a manner consistent with a reasonable person, adhering to professional advice about cryptocurrencies, as the available regulations on this matter were not extensive at the time.

In simple terms, Ver argued that he expected himself to become a focus of tax investigations by the IRS following his decision to leave the country. He defended his actions as being in line with the law. Moreover, his legal team contends that it was only after Ver relocated to Spain that the IRS provided clear guidelines on crypto taxes. This is when they could accurately assess the value of his Bitcoin holdings, which was challenging due to the asset’s low liquidity and significant price fluctuations at the time.

The indictment made public by the U.S Department of Justice this year states that the document accuses Ver and his two companies of owning around 70,000 bitcoins as early as June 2017. It is also alleged that he was obligated to pay a tax, known as an “exit tax,” on those capital gains. As of Feb. 4, 2014, Ver and his companies are said to have owned approximately 131,000 bitcoins, which were traded on various large exchanges for around $871 each. Out of these, MemoryDealers and Agilestar reportedly held about 73,000 of those bitcoins.

The case has attracted a lot of attention from the crypto community, with many condemning the U.S. DOJ for its enforcement-first approach to digital assets, especially under the Biden government which has faced criticism for its perceived ‘anti-crypto‘ stance. Critics like Robert Barnes, a civil rights attorney who supports Ver’s case, believe the charges represent selective enforcement. “This is another example of lawfare against the crypto industry, targeting individuals based on political considerations rather than clear evidence of wrongdoing,” said Barnes. 

In light of the upcoming change in U.S. administration, which some within the cryptocurrency sector view as more supportive of digital assets, there’s a growing anticipation for a more lenient stance on cases like Ver’s, particularly those perceived to be politically motivated. Given this expected shift under the Trump administration, it’s reasonable to assume that Ver’s trial, scheduled for February 2025 and centered around extradition issues, may face a less rigid approach.

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2024-12-04 06:18