Roger Ver finds himself battling a U.S. criminal indictment that accuses him of dodging $240 million in taxes from Bitcoin transactions.
Ver, who was taken into custody in Barcelona in April 2024, has filed a motion seeking to dismiss these charges. The former CEO of Bitcoin.com faces eight counts from the U.S. Attorney for the Central District of California, who claims Ver evaded taxes amounting to over $48 million, as reported by FOX Business. Allegations suggest that back in 2014, Ver misrepresented his Bitcoin holdings and other financial assets. Now, his defense team is alleging that the indictment is tainted by governmental bias.
### Ver’s Legal Challenge: Attorney-Client Privilege at Stake
According to Ver’s legal representatives, the Department of Justice overstepped by accessing confidential communications between Ver and his attorneys without disclosing essential evidence to the grand jury. Ver maintains he sought professional tax guidance based on the scant regulatory framework available for cryptocurrencies at the time, doing only what any prudent individual would.
Ver contends that he anticipated becoming a target for the IRS following his decision to renounce his U.S. citizenship, asserting that his actions were within legal bounds. His defense argues that the IRS only began issuing definitive guidelines on cryptocurrency taxes after Ver relocated to Spain. It was then that a fair market valuation of his Bitcoin holdings became viable, complicated by the asset’s initial lack of liquidity and its volatile nature.
> As per the indictment, which the U.S. Department of Justice unsealed earlier this year, the document states, “By June 2017, Ver’s entities allegedly still possessed around 70,000 bitcoins. It was claimed he needed to settle a tax—dubbed as an ‘exit tax’— on those capital gains. By February 4, 2014, Ver and his businesses reportedly held nearly 131,000 bitcoins, valued at around $871 each on multiple major exchanges. MemoryDealers and Agilestar supposedly maintained approximately 73,000 of these bitcoins.”
The crypto world is watching keenly, with many voices criticizing the U.S. Department of Justice for its aggressive stance towards digital assets under the Biden administration. Critics, including Robert Barnes—a civil rights lawyer championing Ver’s cause—describe the charges as a case of selective prosecution. Barnes commented, “This represents another instance of using the law as a weapon against the crypto sector, focusing on individuals for political reasons instead of conclusive evidence of misconduct.”
Ver’s motion to have the indictment dismissed coincides with the U.S. preparing to welcome a new administration, perceived by many in the crypto sector as more open to digital assets. With the Trump administration set to take over, there’s a growing anticipation of a softer approach towards cases like Ver’s, particularly those with political underpinnings. Ver’s trial, slated for February 2025, remains contingent on the outcome of his extradition proceedings.
