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04/12/24
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Roger Ver Fights Legal Battle Over Alleged Tax Evasion Linked to Bitcoin Sales
Roger Ver, widely recognized as a prominent figure in the cryptocurrency community, is currently embroiled in a legal dispute with U.S. prosecutors who allege he engaged in tax evasion when selling a substantial amount of Bitcoin. Ver has entered a motion in a California federal court, arguing for the dismissal of the case, labeling the charges as unconstitutional.
In his December filing, Ver asserted that the Internal Revenue Service’s (IRS) exit tax, imposed on individuals renouncing their U.S. citizenship and holding assets exceeding $2 million, is both unconstitutional and ambiguous. He argued that the provisions of the relevant tax laws were unclear, particularly regarding their applicability to cryptocurrencies, which he claimed contributed to his case.
The IRS exit tax is designed to ensure that individuals fulfill their tax obligations prior to relinquishing their citizenship and withdrawing from the U.S. tax framework. Ver contends that prosecutors not only mismanaged the investigation but also allegedly intimidated one of his legal representatives and overlooked vital evidence indicating he had no intentions of submitting a fraudulent tax return.
Authorities arrested Ver in Spain earlier this year, charging him with multiple offenses including tax evasion and fraud. The prosecution alleges that he failed to report significant capital gains from the sale of Bitcoin, which amounted to more than $48 million. Ver maintains that at the time he was unable to complete a proper exit tax filing due to the lack of active markets for Bitcoin.
In addition to the tax evasion charges, Ver faces accusations of mail fraud and filing false tax returns, potentially leading to a lengthy prison sentence if convicted. Notably, Ver has been recognized as a significant early supporter of Bitcoin and a notable evangelist for digital currency. His past includes a controversial period involving both a public split in the Bitcoin community and previous legal troubles related to the sale of explosives on an online platform.
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