Roger Ver, one of Bitcoin’s (BTC) earliest and most controversial champions, has agreed to pay $49.9 million to resolve a U.S. tax evasion case, according to a Department of Justice (DOJ) filing released October 14.
The settlement comes through a deferred prosecution agreement, which closes the door on mail fraud and tax evasion charges stemming from Ver’s decision to renounce U.S. citizenship in 2014.
Why the IRS went after ‘Bitcoin Jesus’
Ver, often called “Bitcoin Jesus” for distributing BTC freely in the early 2010s to spread adoption, failed to properly disclose the full size of his Bitcoin fortune when he expatriated.
By law, individuals who give up U.S. citizenship must pay an “exit tax” on all global assets. Prosecutors said Ver intentionally concealed holdings, causing a $16.8 million federal tax loss.
Adding in fraud penalties and accrued interest, his liability swelled to nearly $50 million.
U.S. citizenship change sparked tax clash
The California-born investor became a citizen of St. Kitts and Nevis in 2014 and filed his expatriation-related returns in 2016. The DOJ said those filings deliberately understated his Bitcoin wealth, violating federal tax rules.
Despite his status as a leading crypto evangelist, Ver’s omission placed him in direct conflict with the IRS at a time when regulators were sharpening their focus on digital assets.
Authorities warn crypto investors
U.S. officials stressed that digital asset holders face the same obligations as traditional taxpayers.
“Whether you deal in dollars or digital assets, you must file accurate tax returns and pay what you owe,” said Associate Deputy Attorney General Ketan D. Bhirud.
The settlement spares Ver from prison time but forces him to surrender a large portion of his crypto fortune, with the deal closing a decade-long dispute, but it also cements the IRS’s stance that cryptocurrency profits, no matter how early, remain taxable and enforceable.
Source: https://finbold.com/heres-how-much-bitcoin-jesus-roger-ver-will-pay-in-u-s-tax-case/