'Bitcoin Jesus' Hid $48 Million From The IRS: Authorities

SANTA CLARA, CA — An early Bitcoin investor known as “Bitcoin Jesus” is accused of lying about his assets to evade at least $48 million in taxes, according to authorities.

Roger Ver, formerly of Santa Clara, was arrested over the weekend in Spain, according to the U.S. Department of Justice, which said federal authorities will seek his extradition to stand trial. He is charged with mail fraud, tax evasion and filing false tax returns, authorities said.

Ver owned two companies — MemoryDealers.com Inc. and Agilestar.com Inc. — that sold computer and networking equipment, according to the department.

In February 2014, Ver obtained citizenship in St. Kitts and Nevis, and renounced his U.S. citizenship, according to authorities, who said that at the time he and his companies owned about 131,000 Bitcoins worth around $871 each. The companies held roughly 73,000 of those Bitcoins, authorities said.

Ver hired a law firm for his expatriation as well as an appraiser, but he provided them with false or misleading information that concealed how many Bitcoins he and his companies owned, resulting in false tax returns, according to the department.

Around June 2017, Ver took possession of about 70,000 Bitcoins owned by his companies, and in November 2017 he sold tens of thousands of them for around $240 million, authorities said.

Although he was not a U.S. citizen, he was required to report and pay tax on certain distributions from his U.S. companies, but he hid the Bitcoin sale from his accountant and his 2017 individual income tax return did not reflect any gain or pay taxes related to the Bitcoins, according to the department.

The IRS cybercrimes unit is investigating, authorities said.