Roger Ver’s Deferred Prosecution Agreement
Roger Ver, famously dubbed “Bitcoin Jesus,” has come to a deferred prosecution agreement with the United States Department of Justice (DOJ) to settle a significant federal tax dispute. In this arrangement, the DOJ revealed that Ver must pay nearly $50 million to the Internal Revenue Service (IRS), which includes outstanding taxes, penalties, and interest accrued over time. The origins of these charges date back to allegations of Ver’s intentional failure to disclose his extensive Bitcoin assets on his tax returns after he renounced his U.S. citizenship in 2014.
Details of the Settlement
As part of the resolution, the DOJ has moved to drop the charges against him. Ver admitted that his tax filings from May 2016 inaccurately reported his Bitcoin assets and neglected to account for the necessary capital gains taxes, leading to an estimated loss of more than $16 million in government revenue.
In addition, he recognized his liability for penalties exceeding $12 million under the relevant section of the U.S. tax code, alongside interest due on the outstanding amounts. Following his renunciation of citizenship, Ver, who became a citizen of St. Kitts and Nevis, was obligated to file tax returns that addressed such expatriation matters and report gains from his global assets, including Bitcoin.
Legal Challenges and Advocacy
In a 2024 motion, Ver attempted to have the charges dismissed on the grounds that the IRS’s so-called “exit tax” was unconstitutional and ambiguously defined. Earlier this year, Ver made headlines when he appealed directly to President Donald Trump, pleading for action to avert a possible extradition back to the U.S.
Impact on the Cryptocurrency Community
Ver has positioned himself as a key figure in the cryptocurrency community, but his advocacy has attracted scrutiny due to his links with the Bitcoin Cash network, which emerged from Bitcoin in 2017. Investigations have connected him to various crypto projects and individuals accused of fraud and money laundering, complicating his legal situation even further.
Broader Implications
The outcome of Ver’s tax issues may resonate far beyond his personal finances, highlighting significant considerations for expatriates and cryptocurrency investors regarding the taxation of digital assets and the need for compliance with international financial regulations.
