WASHINGTON, D.C. – The Department of Justice announced that Roger Ver, an early bitcoin investor widely known as “Bitcoin Jesus,” entered into a deferred prosecution agreement to resolve federal tax charges related to his failure to report bitcoin holdings when he renounced his U.S. citizenship in 2014.
As part of the agreement, Ver has paid nearly $50 million in back taxes, penalties, and interest to the Internal Revenue Service. The government has moved to dismiss the indictment against him.
According to the deferred prosecution agreement, Ver began acquiring bitcoins in 2011 and publicly promoted the cryptocurrency, earning his nickname. In March 2014, he expatriated from the United States after obtaining citizenship in St. Kitts and Nevis. Because of his net worth, he was required to report capital gains on his worldwide assets, including bitcoin, and file expatriation-related tax returns.
In May 2016, Ver filed those returns but failed to report all of his bitcoin holdings or pay capital gains taxes on their constructive sale. He admitted that his actions caused a loss of $16,864,105 to the United States and that his failure to report was willful. Ver also admitted he owed over $12 million in civil fraud penalties, in addition to interest.
“We are pleased that Mr. Ver has taken responsibility for his past misconduct and satisfied his obligations to the American public,” said Associate Deputy Attorney General Ketan D. Bhirud. “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.”
Acting United States Attorney Bill Essayli for the Central District of California added, “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.”
Kareem Carter, Executive Special Agent in Charge of the IRS-Criminal Investigation Washington, D.C. Field Office, said the case demonstrates that “no matter how sophisticated the technology or the asset, IRS-CI will continue to follow the money.”
The case was investigated by the Cyber Crimes Unit of IRS Criminal Investigation’s Washington, D.C. Field Office. It was prosecuted by Assistant Chief Matthew J. Kluge and Trial Attorney Peter J. Anthony of the Tax Division, and Assistant U.S. Attorney James C. Hughes of the Central District of California.
