An investor renowned in the cryptocurrency community, often referred to as “Bitcoin Jesus,” has reached a significant settlement with the U.S. government. Roger Ver, an early adopter and promoter of Bitcoin, has agreed to pay nearly $50 million to cover back taxes, penalties, and interest due to his failure to accurately report his Bitcoin holdings on his tax returns. This announcement was made by the U.S. Department of Justice recently.
In exchange for Ver’s compliance, the government has agreed to dismiss the indictment against him. Ver, who relocated from the United States to St. Kitts and Nevis in 2014, was under scrutiny for failing to report his substantial cryptocurrency investments, which by 2016 had significantly appreciated in value.
Ketan D. Bhirud, Associate Deputy Attorney General, remarked on the resolution, stating, “We are pleased that Mr. Ver has taken responsibility for his past misconduct and satisfied his obligations to the American public.” He emphasized that this case highlights the necessity for accuracy in tax reporting for all individuals, regardless of their financial dealings—be it in traditional currency or digital assets.
Roger Ver’s foray into Bitcoin began in 2011, and he rapidly established himself as a key advocate for the cryptocurrency movement. Following his expatriation, he was mandated to file specific tax returns and address tax liabilities on capital gains related to his global assets, which included his Bitcoin holdings.
As part of the settlement, Ver acknowledged that when submitting his tax returns in May 2016, he did not disclose the complete extent of his Bitcoin wealth, thus failing to pay the obligatory capital gains tax stemming from these assets. His admission revealed that this oversight resulted in a loss to the U.S. government amounting to $16,864,105. Ver also conceded that he owed more than $12 million in maximum penalties under the relevant tax code, in addition to accrued interest.
Bill Essayli, Acting United States Attorney for the Central District of California, noted, “Mr. Ver is accepting responsibility for his actions and has agreed to pay a substantial penalty.” He reiterated the legal obligation for all individuals, regardless of wealth, to pay taxes. The government’s resolve to enforce accountability in tax compliance was further echoed by Kareem Carter, Executive Special Agent in Charge, who affirmed that the IRS-Criminal Investigation division will rigorously pursue compliance and uphold the integrity of the tax system.
The investigation into Ver’s case was undertaken by the Cyber Crimes Unit of the IRS Criminal Investigation’s Washington, D.C. Field Office, with prosecution led by Assistant Chief Matthew J. Kluge, Trial Attorney Peter J. Anthony of the Tax Division, and Assistant U.S. Attorney James C. Hughes of the Central District of California.
