'Bitcoin Evangelist' Arrested in Spain for Alleged US Tax Evasion

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'Bitcoin Evangelist' Arrested in Spain for Alleged US Tax Evasion

Roger Ver, a prominent early investor in bitcoins often referred to as the "Bitcoin Jesus," has been apprehended in Spain on charges of evading over $48 million in taxes owed to the United States, according to a statement from the U.S. Department of Justice released on Tuesday.

The arrest followed an indictment filed in a federal court in Los Angeles, where Ver faces charges of mail fraud and tax evasion. The Department of Justice revealed that the indictment was unsealed after Ver's arrest in Spain over the weekend.

Notably, the U.S. Supreme Court recently dismissed an appeal from an unnamed law firm related to contempt charges stemming from their failure to comply with a grand jury subpoena regarding records linked to a client matching Ver's profile.

In response to the arrest, Bryan Skarlatos, Ver's attorney, expressed surprise and disappointment, stating that Ver was detained while traveling in Spain. Skarlatos maintained that Ver had relied on reputable tax professionals to manage his Bitcoin assets and had always intended to fulfill his U.S. tax obligations.

Ver, who previously served as the CEO of Bitcoin.com, began acquiring bitcoins in 2011 and actively advocated for the cryptocurrency, earning him the moniker "Bitcoin Jesus."

In 2014, Ver relinquished his U.S. citizenship and became a citizen of St. Kitts and Nevis, a move that prosecutors argue had tax implications. Under U.S. tax laws, renouncing citizenship triggers a "constructive sale" of assets, requiring any gains to be reported in that tax year.

At the time of his citizenship change, Ver and his companies, MemoryDealers.com and Agilestar.com, possessed approximately 131,000 bitcoins valued at over $114 million. Prosecutors allege that Ver provided false information to a law firm handling his tax matters, resulting in undervaluation of his assets and underreporting of taxes owed.

The indictment further accuses Ver of failing to pay taxes on proceeds from the sale of 70,000 bitcoins owned by his companies, which generated around $240 million in 2017. Prosecutors estimate that the Internal Revenue Service (IRS) was deprived of $48 million in taxes between 2014 and 2017 due to Ver's alleged actions.

The Department of Justice intends to pursue Ver's extradition to the United States for trial.

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