Bitcoin pioneer Roger Ver, once dubbed "Bitcoin Jesus" for his early and vocal advocacy of the cryptocurrency, has struck a deal with the federal government, admitting to willful misconduct regarding his tax obligations following his renunciation of U.S. citizenship in 2014. According to the deferred prosecution agreement detailed on the Justice Department's website, Ver has paid nearly $50 million in back taxes, penalties, and interest after failing to report his bitcoin holdings accurately on tax returns.
Ver's journey with bitcoin began in 2011, building a reputation for himself as a key promoter of the digital currency, and eventually stepping away from his U.S. citizenship in March 2014 to take up citizenship in St. Kitts and Nevis, during this shift, however, he was required by law to file certain tax documents and pay taxes on his global assets, which included the now-famed bitcoins. The files he submitted in May 2016 omitted critical information about these assets, an admission Ver has now confirmed led to a substantial loss to the U.S. Treasury of over $16 million. Consequently, a penalty well over $12 million was imposed on him, alongside the accruing interest charges, bringing the total settlement to the eye-watering sum mentioned earlier.
Acting United States Attorney Bill Essayli said, "Mr. Ver is accepting responsibility for his actions and has agreed to pay a substantial penalty,” highlighting that tax laws apply uniformly, regardless of wealth status. The Justice Department's announcement underscored the message that compliance is mandatory, whether one trades in traditional fiat currency or the less tangible digital counterparts. Associate Deputy Attorney General Ketan D. Bhirud remarked, "This resolution sends a clear message: whether you deal in dollars or digital assets, you must file accurate tax returns and pay what you owe.” IRS Criminal Investigation official Kareem Carter reinforced this stance, declaring that consequences await those who dodge their fiscal responsibilities.
The case, emanating from investigations spearheaded by the Cyber Crimes Unit of IRS Criminal Investigation's Washington, D.C. Field Office, was prosecuted by members of the Major Frauds Section and the Tax Division, with Assistant United States Attorney James C. Hughes, Assistant Chief Matthew J. Kluge, and Trial Attorney Peter J. Anthony at the helm. The culmination of this comprehensive scrutiny signifies the unyielding pursuit of the IRS across both traditional and cyber domains, a testament to their unflinching commitment to uphold the integrity of the taxation system, and by extension, a functional democracy. Public Information Officer Ciaran McEvoy provided official details on the Justice Department's website, where the full statement can be accessed.
