Roger Ver, an early investor in Bitcoin-related startups known as “Bitcoin Jesus” has been arrested in Spain and charged with tax fraud.
In an announcement, U.S. Department of Justice said an indictment that was unsealed charging Ver with mail fraud, tax evasion and filing false tax returns. The authorities said they have arrested Ver this weekend in Spain based on the U.S. criminal charges.
US Authorities Applying to Extradite Ver
The next steps will involve the U.S. applying to extradite Ver to stand trial in America. The authorities estimate Ver is alleged to have caused a loss to the Internal Revenue Service (IRS) of at least $48 million. The IRS Criminal Investigation’s cybercrimes unit is still investigating the case.
Ver widely known as “Bitcoin Jesus” renounced his U.S. citizenship and obtained citizenship in St. Kitts and Nevis. He is originally from Santa Clara, California, and owned several U.S.-listed businesses such as MemoryDealers.com. and Agilestar.com. In 2011, Ver allegedly began first acquiring Bitcoins for himself and his companies.
Ver Sold Thousands of Bitcoins Taking $240M Profit
The indictment alleges that in November 2017 Ver allegedly sold tens of thousands of bitcoin on cryptocurrency exchanges for approximately $240 million in cash.
By then Ver had given up his U.S. citizenship, but he was still legally required to report to the IRS and pay tax on certain distributions such as dividends from MemoryDealers and Agilestar, which were U.S. corporations.
The U.S. Department of Justice said Ver was required under U.S. law to file tax returns that reported capital gains from the sale of his worldwide assets, including the Bitcoins, and pay an “exit tax” on capital gains.