Pardoned Silk Road Founder Rallies Behind Ver’s Tax Case

TLDR

• Ross Ulbricht, recently pardoned Silk Road founder, publicly supports Roger Ver’s case, stating “no one should spend life in prison over taxes”
• Ver faces DOJ charges for allegedly understating bitcoin holdings worth $240 million when filing his “exit tax” before renouncing US citizenship in 2014
• Currently under house arrest in Spain, Ver faces up to 109 years if convicted, with the IRS claiming he owes approximately $48 million in taxes
• Ver’s legal team argues the case is politically motivated due to his libertarian and crypto advocacy, challenging the constitutionality of the “exit tax”
• The “Free Roger” campaign, modeled after the successful “Free Ross” campaign, has gained support primarily in crypto and libertarian circles

Roger Ver, an early Bitcoin pioneer known as “Bitcoin Jesus,” faces up to 109 years in prison following his arrest in Spain on behalf of the U.S. Department of Justice. The charges stem from alleged tax fraud related to his 2014 citizenship renunciation and subsequent bitcoin sales.

Spanish authorities detained Ver while he attended a crypto conference in April 2024. The DOJ’s indictment includes eight counts, including mail fraud, tax evasion, and filing false tax returns. At the core of the case is approximately $48 million in taxes the IRS claims Ver owes.

According to the U.S. Attorney’s Office of the Central District of California, Ver allegedly undervalued the sale of tens of thousands of bitcoins worth $240 million in 2017. These assets were technically owned by his U.S.-based companies, MemoryDealers and Agilestar.

Ver’s companies, which sold computer and networking equipment, held upwards of 73,000 bitcoins at times. The DOJ alleges Ver undervalued these holdings when preparing his “exit tax” during his expatriation process. Bitcoin’s price fluctuated considerably in 2014, reaching highs above $800 and lows around $330.

Currently under house arrest in Spain after posting €150,000 (approximately $157,000) bail, Ver awaits an extradition decision. His legal representation includes attorneys from Steptoe LLP and Kimura London & White, who argue the case represents “unconstitutional overreach.”

The defense team questions the validity of the “exit tax” itself, implemented in 2008 to prevent tax avoidance by wealthy individuals renouncing citizenship. They argue its application to cryptocurrency holdings presents unique legal challenges that weren’t considered when the law was created.

It is unusual for prosecutors to pursue someone for miscalculating their “exit tax” 10 yrs after they renounced their citizenship.
The prosecution of @rogerkver appears to be part of the Biden admin’s coordinated attack on crypto.
I would expect the Trump DOJ to drop the case.

— MetaLawMan (@MetaLawMan) February 20, 2025

Ver’s website states that after six years of investigation, the IRS charges came under questionable pretenses. His team maintains that the allegations contradict his efforts to comply with tax obligations proactively.

Ross Ulbricht, the recently pardoned founder of Silk Road, has publicly supported Ver’s case. “Roger Ver was there for me when I was down and needed help. Now Roger needs our support,” Ulbricht posted on X, adding that no one should face life imprisonment over taxes.

Roger Ver was there for me when I was down and needed help. Now Roger needs our support.

No one should spend the rest of their life in prison over taxes. Let him pay the tax (if any) and be done with it. #FreeRoger pic.twitter.com/flP573hm0N

— Ross Ulbricht (@RealRossU) February 20, 2025

Legal History and Citizenship

This isn’t Ver’s first encounter with U.S. law enforcement. In 2002, he served 10 months in federal prison for selling fireworks on eBay without proper licensing and improper storage and mailing practices. Ver describes this as “a unique legal challenge,” claiming he was the only person ever prosecuted for such an offense.

Following his release, Ver left the United States in 2005, moving to Japan. He later attempted to obtain Guatemalan citizenship before securing citizenship in St. Kitts and Nevis in 2014, when he renounced his U.S. citizenship.

Ver’s legal team has raised concerns about the investigation methods. In 2018, IRS agents questioned his tax lawyer and MemoryDealers employees without a warrant, which the Free Roger team argues violated attorney-client privilege.

The “Free Roger” campaign, modeled after the successful “Free Ross” campaign, has gained support primarily within cryptocurrency and libertarian circles. However, some observers note key differences between the cases, including that Ulbricht was already serving his sentence while Ver’s case remains in legal proceedings.

Ver helped launch several crypto startups in Bitcoin’s early days, providing seed funding to companies like BitPay and Kraken. However, he later faced criticism from some community members for supporting the “big blocks” position during the Bitcoin/Bitcoin Cash fork.

According to prediction market Polymarket, Ver has a 10% chance of receiving a pardon from Trump within his first 100 days in office, placing him just below Edward Snowden and Julian Assange in likelihood.

Ver remains in Spain under house arrest while his legal team continues to challenge both the specifics of his case and the broader constitutional questions surrounding expatriation taxes on cryptocurrency holdings.