Crypto evangelist known as ‘Bitcoin Jesus’ avoids prison with $50M payment to feds

An early cryptocurrency evangelist once dubbed “Bitcoin Jesus” reached a tentative deal Tuesday with the U.S. Justice Department to pay nearly $50 million to resolve federal charges alleging he evaded tens of millions of dollars in taxes.

Under the agreement, Roger Ver would pay the IRS $49.9 million in back taxes, penalties and interest stemming from his failure to report his bitcoin holdings on tax returns before renouncing his U.S. citizenship in 2014. He was arrested in Spain last year as prosecutors sought extradition.

In January, Ver publicly appealed to President Donald Trump for help, claiming his case was politically motivated and said he faced a potential 100-year sentence.

Starting in 2011, Ver began acquiring bitcoins. Over the years, he avidly promoted them, and in March 2014, renounced his U.S. citizenship, according to papers filed in Los Angeles federal court.

Due to his net worth, Ver was required to file certain expatriation-related tax returns and to pay taxes on the capital gains on his worldwide assets, including his bitcoins. In the agreement, which still requires court approval, Ver admitted that when he filed his returns in May 2016, he did not report all his bitcoins and did not pay the required capital gains tax on their constructive sale, according to the DOJ.

Ver admitted that his failure to report capital gains from the bitcoins caused a loss to the United States of more than $16.8 million, prosecutors said.

“Mr. Ver is accepting responsibility for his actions and has agreed to pay a substantial penalty,” Acting U.S. Attorney Bill Essayli said in a statement. “Every person, whether you’re a millionaire or not, is required by law to pay taxes, and we will not hesitate to hold anyone accountable.”

(Visited 1 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *