U.S. authorities hunt for Bitcoin Cash backer Roger Ver over $48 million tax fraud

Brief overview:

•Roger Ver, known as “Bitcoin Jesus,” was charged with $48 million in tax fraud.

•Faces charges of mail fraud, tax evasion and filing false returns.

•Arrested in Spain, extradition sought by the US; also sued by Genesis and CoinFex.

Roger Ver now faces serious legal challenges due to his early and enthusiastic support of Bitcoin. A recent indictment charged him with mail fraud, tax evasion and filing false tax returns.

As the charges became public, Spanish authorities arrested Ver and the United States is now seeking his extradition.

WhyRoger Verfaces Bitcoin tax evasion charges

Ver, a former resident of Santa Clara, California, owns MemoryDealers.com Inc. and Agilestar.com Inc., which sell computers and networking equipment. He began purchasing Bitcoin for personal and business purposes around 2011.

However, his legal problems escalated after he renounced his U.S. citizenship in 2014, having previously been granted citizenship in St. Kitts and Nevis. As a result, he was required to report capital gains from his global holdings, including 131,000 Bitcoins worth approximately $871 at the time.

According to the indictment, Ver allegedly provided false information to his legal and tax advisors, causing his tax filings to significantly understate his assets. By 2017, Ver allegedly controlled and sold approximately 70,000 Bitcoins worth approximately $240 million, a transaction that he failed to report to the IRS. This oversight allegedly resulted in at least $48 million in lost tax revenue.

"Although Ver was no longer a U.S. citizen at the time, he was still required by law to report to the IRS and pay taxes on certain distributions, such as dividends from MemoryDealers and Agilestar, which are U.S. corporations," the DOJ wrote.

## In addition, Ver's financial activities have led to other legal challenges. For example, cryptocurrency lending company Genesis sued him for unsettling $20.8 million worth of cryptocurrency options trades. Likewise, Seychelles-based exchange CoinFex also took legal action against Ver over his unsettled $47 million margin debt.

Additionally, the cryptocurrency industry has witnessed other significant legal actions. On April 30, Binance founder Changpeng Zhao (CZ) also faced court.

Zhao was sentenced to four months in prison after pleading guilty to violating the Bank Secrecy Act. Although he could have been sentenced to three years in prison, his cooperation with authorities significantly reduced his sentence. In addition, he must pay a $50 million fine.

The cases highlight the growing scrutiny and regulatory challenges facing the cryptocurrency industry. They highlight the importance of complying with financial regulations and tax laws, which are becoming increasingly important as the digital asset space continues to evolve.

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