Bitcoin News Today: Roger Ver Faces 109 Years In Prison Over 48 Million Tax Evasion

Roger Ver, a prominent figure in the cryptocurrency world, is currently fighting extradition to the U.S. over allegations of tax evasion amounting to $48 million. The U.S. authorities have charged him with multiple counts of tax fraud related to his crypto fortune and business dealings. Ver was arrested in Spain in April 2024 and has since been out on bail. His case is now before the European Court of Human Rights, where he accuses the Spanish government of violating his legal protections by agreeing to send him back to the U.S. If convicted, Ver faces up to 109 years in prison.

According to the Department of Justice, Ver renounced his American citizenship in 2014 and acquired citizenship in St. Kitts and Nevis. However, U.S. prosecutors allege that he dodged millions in taxes by failing to pay an “exit tax” on unrealized capital gains from his Bitcoin holdings at the time of expatriation. This exit tax is a requirement for individuals who renounce their U.S. citizenship and have a net worth exceeding a certain threshold. Ver is accused of intentionally avoiding this tax obligation.

In addition to the exit tax allegations, authorities claim that in 2017, Ver failed to report hundreds of millions in crypto sales made through his companies, MemoryDealers and Agilestar, both registered in the U.S. Despite no longer being a U.S. citizen, Ver was still subject to taxes on dividends and distributions from domestic corporations. This failure to report and pay taxes on these transactions is a significant part of the charges against him.

Ver has contested the charges, arguing that the exit tax is unconstitutional and that the case against him lacks legal clarity. His legal team is seeking to have all eight charges dismissed. The legal battle is complex, as it involves interpreting the tax laws and the constitutional rights of individuals who renounce their citizenship. Ver's defense team is likely to focus on the ambiguity of the tax laws and the potential overreach of the U.S. government in pursuing these charges.

The crypto community has mixed reactions to Ver's situation. Some support him, citing his role in early Bitcoin adoption and his advocacy for Bitcoin Cash. Others argue that by giving up his U.S. citizenship, Ver forfeited any claim to protection or leniency from the U.S. government. Ver has also appealed directly to President Donald Trump for a pardon, though no official response has been made. This appeal highlights the political and legal complexities surrounding Ver's case, as it involves high-profile figures and significant financial stakes.

The outcome of Ver's extradition battle and the subsequent legal proceedings will have implications for the broader cryptocurrency community. The case raises questions about the tax obligations of individuals involved in crypto transactions and the legal protections afforded to those who renounce their citizenship. As the case unfolds, it will be closely watched by legal experts, tax professionals, and cryptocurrency enthusiasts alike. The resolution of this case could set important precedents for future tax evasion cases involving cryptocurrencies and expatriates.