LOS ANGELES
Roger Ver, a cryptocurrency entrepreneur once nicknamed “Bitcoin Jesus,” has admitted to failing to pay U.S. taxes on his bitcoin holdings and agreed to a deferred prosecution deal with federal prosecutors, officials stated.
Ver, who renounced his U.S. citizenship in 2014 after becoming a citizen of St. Kitts and Nevis, will pay nearly $50 million in back taxes, penalties, and interest to the Internal Revenue Service.
According to authorities, prosecutors stated that his failure to report his bitcoin assets when filing expatriation-related tax returns in 2016 resulted in a $16.8 million loss to the government.
Under the agreement, the Justice Department moved Tuesday to dismiss the indictment against him. Ver acknowledged that his conduct was willful, triggering the maximum penalty of more than $12 million in addition to taxes and interest.
“Every person, whether you’re a millionaire or not, is required by law to pay taxes, and we will not hesitate to hold anyone accountable,” Acting U.S. Attorney Bilal A. Essayli said in a statement.
IRS investigators said the case underscored their ability to trace digital assets. “No matter how sophisticated the technology or the asset, IRS-CI will continue to follow the money,” said Kareem Carter, the agency’s executive special agent in charge.
The investigation was handled by the IRS Criminal Investigation Cyber Crimes Unit in Washington, D.C.