"Pardoned Silk Road Founder Backs 'Bitcoin Jesus' in Tax Fight"

Pardoned Silk Road Founder Rallies Behind Ver’s Tax Case

Ross Ulbricht, the recently pardoned founder of the Silk Road, has publicly expressed his support for Roger Ver, an early Bitcoin pioneer known as “Bitcoin Jesus,” who is currently facing up to 109 years in prison following his arrest in Spain on behalf of the U.S. Department of Justice. The charges stem from alleged tax fraud related to his 2014 citizenship renunciation and subsequent bitcoin sales.

Ver was detained in Spain while attending a crypto conference in April 2024. The DOJ’s indictment includes eight counts, including mail fraud, tax evasion, and filing false tax returns. At the core of the case is approximately $48 million in taxes the IRS claims Ver owes. According to the U.S. Attorney’s Office of the Central District of California, Ver allegedly undervalued the sale of tens of thousands of bitcoins worth $240 million in 2017, which were technically owned by his U.S.-based companies, MemoryDealers and Agilestar.

Ver’s companies, which sold computer and networking equipment, held upwards of 73,000 bitcoins at times. The DOJ alleges Ver undervalued these holdings when preparing his “exit tax” during his expatriation process. Bitcoin’s price fluctuated considerably in 2014, reaching highs above $800 and lows around $330.

Currently under house arrest in Spain after posting €150,000 (approximately $157,000) bail, Ver awaits an extradition decision. His legal representation includes attorneys from Steptoe LLP and Kimura London & White, who argue the case represents “unconstitutional overreach.” The defense team questions the validity of the “exit tax” itself, implemented in 2008 to prevent tax avoidance by wealthy individuals renouncing citizenship. They argue its application to cryptocurrency holdings presents unique legal challenges that weren’t considered when the law was created.

It is unusual for prosecutors to pursue someone for miscalculating their "exit tax" 10 years after they renounced their citizenship. Ver’s website states that after six years of investigation, the IRS charges came under questionable pretenses. His