‘Bitcoin Jesus’ Fights $48M Tax Evasion Charges, Slams IRS Rules

Roger Ver, famously known as “Bitcoin Jesus” for his early role in cryptocurrency, is in the spotlight once again—this time for a legal battle. U.S. prosecutors allege that Ver dodged $48 million in taxes tied to Bitcoin sales. Ver, however, is not just denying the accusations; he’s also challenging the legality of the tax rules themselves.

Here’s everything you need to know.

Challenging the IRS: Is the Exit Tax Unconstitutional?

On December 3, Ver filed a motion in a California federal court, arguing that the IRS’s “exit tax” is unconstitutional. This tax ensures individuals pay any dues before renouncing U.S. citizenship, targeting those with over $2 million in assets.

Ver, who gave up his U.S. citizenship in 2014 for Japanese citizenship, claims the tax rules for digital assets are unclear. He also points out that back in 2014, Bitcoin markets lacked the liquidity needed to easily settle such taxes.

His legal team argues that the tax law conflicts with two key constitutional principles: the Apportionment Clause and the Due Process Clause. What will the court say?

Prosecutors Say It’s More Than a Mistake

The prosecution has presented a starkly different story. They claim Ver deliberately avoided reporting $240 million in Bitcoin sales and filed false tax returns. According to them, this is a clear case of tax evasion and fraud.

If convicted, Ver could face up to 30 years in prison—a significant penalty for someone with his influence in the cryptocurrency world. Despite this, Ver maintains he had no intent to evade taxes and insists he followed the rules, pointing to documents that he says prove his compliance.

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A Controversial Figure

Ver’s rise in the cryptocurrency world has been full of milestones and controversies. In 2011, he made headlines for buying Bitcoin when it was priced at less than $1, earning him the nickname “Bitcoin Jesus.” Later, he became a leading supporter of Bitcoin Cash (BCH) following Bitcoin’s 2017 hard fork.

However, Ver’s legal troubles are not new. In 2003, he served 10 months in prison for selling explosives online. More recently, in 2022, crypto exchange CoinFlex accused him of owing $47 million in USD Coin (USDC).

FAQs

With millions at stake and constitutional questions on the line, this fight is one to watch.