Roger Ver tax misconduct case highlights his failure to report bitcoin holdings properly, leading to a deferred prosecution agreement and payment of nearly $50 million in back taxes and penalties.
Roger Ver, a well-known early advocate for Bitcoin often dubbed “Bitcoin Jesus,” has entered into a deferred prosecution agreement with the U.S. Department of Justice after admitting to tax-related misconduct.
The DOJ revealed that Ver failed to properly report and pay taxes on his extensive bitcoin holdings when he expatriated from the United States in 2014. As part of the agreement, he paid nearly $50 million in back taxes, penalties, and interest to the IRS.
Update on Roger Ver Tax Misconduct
Ver started acquiring bitcoin as early as 2011 and actively promoted the cryptocurrency’s global adoption. He later renounced his U.S. citizenship and obtained citizenship in St. Kitts and Nevis.
Under U.S. tax law, individuals who expatriate are required to disclose all of their assets and pay taxes on the gain from the constructive sale of those assets, which includes digital currencies like bitcoin. According to the DOJ, Ver significantly underreported the number of bitcoins he held at the time, thereby avoiding millions in capital gains taxes.
In Roger Ver tax misconduct filings, he claimed ownership of only a portion of the bitcoin he held, omitting substantial amounts held through his companies and other means. The resulting tax loss to the U.S. government was estimated at over $16 million.
Department of Justice Ruling Sends Clear Message
The DOJ emphasized that this omission was not accidental but willful; Ver knowingly failed to meet its legal obligations. As part of the deferred prosecution agreement, the government has agreed to dismiss the indictment against him, provided he remains in compliance.
Roger Ver tax misconduct case sends a strong message that even influential figures in the crypto space are not beyond the reach of tax enforcement. The DOJ and IRS Criminal Investigation Division highlighted that tax obligations apply equally, regardless of the type of asset or the taxpayer’s prominence.
The outcome underscores the growing scrutiny around cryptocurrency-related tax compliance and signals that sophisticated financial maneuvers, like expatriation, won’t shield individuals from consequences if they try to evade their tax responsibilities.
