Roger Ver Accused of Tax Evasion
One of the earliest investors in Bitcoin, Roger Ver, has found himself in trouble with the US Department of Justice (DoJ) for allegedly not paying taxes on his crypto earnings, particularly from the sale of Bitcoin in 2017.
Accusations Against Roger Ver
- Ver has been accused of postal fraud, tax evasion, and filing false tax returns by the DoJ.
- Specifically, the accusations pertain to the capital gains Ver made from selling Bitcoin in 2017, amounting to hundreds of millions of dollars.
- He allegedly did not report this income or pay the required taxes on it.
Background of Roger Ver
- Ver, who is also known as “Bitcoin Jesus,” renounced his American citizenship in 2014 and became a citizen of St. Kitts and Nevis.
- He owned companies such as MemoryDealers.com Inc. and Agilestar.com Inc., through which he dealt in computers and network equipment.
- Starting in 2011, Ver began buying Bitcoin for himself and his US-based companies.
Alleged Tax Evasion in 2017
- The DoJ claims that Ver made around $240 million from the sale of Bitcoin in November 2017.
- He is accused of intentionally hiding information about his Bitcoin holdings and sales from both personal and company accounts.
- This alleged evasion resulted in a loss of at least $48 million in taxes for the US government.
Roger Ver’s Arrest and Extradition Request
Following these accusations, Roger Ver was arrested in Spain based on US criminal charges. The United States will seek his extradition to prosecute him for tax fraud.
Crypto Tax Compliance Programs
- As Ver awaits trial, the issue of taxes on crypto assets has gained attention from various industry players, including crypto exchanges.
- Companies like Bitget and Binance have launched programs to assist users in calculating and reporting their crypto taxes.
- Bitget integrated the API of tax reporting platform Koinly to simplify tax calculations for cryptocurrency transactions.
- Binance introduced the Tax Assistant tool in Italy to help users comply with tax regulations related to cryptocurrencies.
Hot Take: Understanding the Implications of Tax Evasion
It is crucial for cryptocurrency investors and enthusiasts to understand the implications of tax evasion, as seen in the case of Roger Ver. Failure to comply with tax laws can lead to legal consequences and tarnish one’s reputation in the industry. By staying informed about tax obligations and leveraging available tools for tax compliance, individuals can avoid legal troubles and contribute to the legitimacy of the crypto space.
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