Bitcoin Jesus Roger Ver Fights US Indictment Alleging Tax Evasion: Details

Roger Ver fights tax evasion accusations and claims constitutional violation as well as lack of guidance on crypto tax during the time. Roger Ver is charged for failure to pay taxes of about $50M from bitcoin sales in 2017 and low business asset declarations in 2014. Ver’s legal advisors stated that the charges were a result of murky laws governing the taxation of digital assets and accused the government of overreaching its authority unconstitutionally. Ver’s attorneys state malfeasance and refer to misuse of privileged communications by the prosecutors and seek dismissal.

‘’ Bitcoin Jesus ‘’ Roger Ver is currently battling an eight-count indictment from the U.S. Attorney for the Central District of California. Ver, who has been famously associated with the cryptocurrency since the beginning and has actively promoted the idea of investing in digital assets, is accused of concealing $50 million in taxes on Bitcoin transactions of $240 million in 2017, according to the Wall Street Journal. Back taxes include charges that Ver understated the worth of his businesses when he lost his American citizenship in April 2014 to avoid higher taxes on expatriation.

Roger Ver Challenges Court on Tax Avoidance

FOX Business says that Roger Ver denies accusations that he failed to pay $50 million in taxes on major Bitcoin sales in 2017. The prosecutors also accused Ver of understating the value of two other businesses he has, namely MemoryDealers US and Agilestar when expatriating in 2014. 

The low figure helped him evade a stiffer exit tax, which is a tax on unrealized capital gains for those who dump their American citizenship. Ver’s lawyer from Steptoe, LLP and Kimura, London & white also moved to dismiss the indictment. The motion states that the Justice Department acted in violation of the Fourth Amendment, and claimed selective suppression of evidence. In addition, it argued that the actions constituted a violation of Ver’s procedural fairness in the Equal Protection Clause. The filing also has letters of communication between Ver and his lawyers showing the effort to meet crypto tax laws at that time.

Allegations of Government Overreach and Communication Misuse

Roger Ver’s attorneys say that prosecutors obtained privileged communications between them and their client and used it in the case. These communications include precise correspondences where Ver procured expert consultation for taxation purposes even though the rules were rather vague.

The legal team also notes that the indictment smacks of selective prosecution against Roger Ver, who has been highly critical of the U.S. approach to the crypto market and regulators. The motion also said the crypto tax rules in Ver’s expatriation were ambiguous which did not justify criminal charges.

Also, the attorneys argue that the conduct of the government compromises fundamental rights under the Constitution for citizens who want to relinquish citizenship. Further, Ver’s defence raison d’être stands that crypto tax regulations were not well spelt out at the time of his alleged crimes. The IRS started guiding virtual assets as property in late 2014 after Ver, the proponent of Bitcoin had relinquished his American citizenship. 

Roger Ver’s legal advisors are quick to argue that he relied on legal advisors and accountants to avoid violating all legal provisions. Specifically, in the filing, its submission of an email correspondence dated April 2013, Ver said to his lawyer, Moreover, emails show that even if Ver’s advisors understood how hard it was to price a Bitcoin in 2014 because of low market turnover, they recommended getting third-party appraisals. The defence also barbs the prosecution that any variation that might have occurred was not intentional and does not call for a criminal defence.

Recently there was consideration of the motion to dismiss an iPhone app by the U.S. District Court for the Central District of California. As Ver’s lawyers stated, this feeler is that the Trump administration may well alter the case.

Legal Battle Highlights Crypto Tax Complexities and Constitutional Concerns

The example of Roger Ver shows that cryptocurrency taxation is not clear, and the experience of regulating it is not easy. In his defence, Bogart has been charged that the haziness of crypto-tax laws at the time and governmental measures have led to an unwarranted charge. Constitutional issues to answer involve rights to free speech, procedural justice and taxation of cryptocurrencies and other digital assets. As Ver’s legal representatives file for dismissal, the ruling may establish various important precedents for solving various tax-related issues concerning cryptocurrencies, primarily affecting expats and pioneers of digital currencies.