Roger Ver, famously dubbed “Bitcoin Jesus,” has been apprehended in Spain on allegations of orchestrating a staggering $48 million loss to the IRS through purportedly deliberate falsification of tax returns. With extradition to the United States looming, the crypto community bristles, suspecting antipathy toward his ideological stance.
Ver, at the helm of MemoryDealers.com Inc. and Agilestar.com Inc., purveyors of computing and networking gear, garnered renown in crypto circles for his early adoption of Bitcoin in 2011. His fervent advocacy for the nascent technology earned him the epithet “Bitcoin Jesus.”
In a seismic move on February 4, 2014, Ver renounced his US citizenship, reportedly acquiring citizenship in St. Kitts and Nevis via expatriation. This act obligated Ver to adhere to US tax laws, requiring him to file returns to delineate capital gains from global asset sales, accompanied by accurate fair market valuations.
Furthermore, an “exit tax” on capital gains was mandated. According to a report from the US Department of Justice (DoJ), Ver’s companies held approximately 131,000 Bitcoins at the time, valued at $871 per token. Notably, MemoryDealers and Agilestar possessed 73,000 Bitcoins.
Allegations surfaced that Ver, under the guise of expatriation, misled both legal counsel and appraisers regarding his Bitcoin holdings and company valuations. Consequently, tax returns were filed understating the companies’ worth and omitting Ver’s personal Bitcoin holdings. Astonishingly, as of June 2017, his companies retained 70,000 Bitcoins. In November 2017, Ver offloaded most of these Bitcoins for $240 million, triggering an IRS investigation revealing tax law breaches and a $48 million loss.
Contrary to expectations, the crypto community mounts a staunch defense, perceiving a nefarious ploy against ecosystem champions. In a post on Crypto News Flash, Ripple Labs’ CTO, David Schwartz, intimates that Ver fell victim to ideological persecution. Recounting a recent conversation with a Bitcoin luminary, Schwartz asserts US authorities selectively pursue two categories of crimes: the egregious and those perpetrated by unfavored individuals. On a personal note, Schwartz extols Ver’s character, acknowledging potential tax evasion while affirming his commitment to moral rectitude and tranquility, which led him to depart the US.
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