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11/12/24
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Bitcoin Jesus Faces Legal Battle: Allegations of Tax Evasion and Fraud
Roger Ver, often referred to as “Bitcoin Jesus” for his early advocacy of cryptocurrency, is currently facing serious legal challenges from the United States Department of Justice (DOJ). His troubles began with an arrest in Spain in April, following the DOJ’s request for his extradition on a variety of charges, including tax evasion, mail fraud, and filing false tax returns.
The DOJ’s allegations center around claims that Ver significantly undervalued his assets and failed to disclose ownership of approximately 131,000 Bitcoin. This failure to report, the authorities say, resulted in a substantial tax shortfall of around $48 million. Ver, however, has firmly rejected these allegations, noting that he was neither a U.S. citizen nor residing in the country when the purported infractions occurred. He suggests that the government’s actions are not primarily about tax issues, but rather stem from his non-compliance and vocal promotion of cryptocurrencies, which he believes undermines government control over financial systems.
The legal basis for the DOJ’s accusations includes claims that Ver did not report considerable capital gains from his Bitcoin transactions and that he misrepresented the value of two companies at the time he renounced his U.S. citizenship. In response, his legal team argues that the charges are outdated and founded on unclear cryptocurrency tax regulations. They also assert that U.S. prosecutors improperly utilized confidential information and breached legal boundaries in their approach.
In recent court filings, Ver has sought to dismiss the tax evasion charges, declaring them unconstitutional due to the ambiguous nature of the IRS’s exit tax regulations. He contends that the laws referenced in his case lack clarity regarding their applicability to digital assets. This ongoing legal battle highlights the complex intersection of cryptocurrency, taxation, and regulations as the industry evolves.
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