Bitcoin investor charged with tax fraud in multi-million dollar scheme

Roger Ver, a supporter and pioneer of Bitcoin, has faced criminal cases related to mail fraud, tax evasion, and filing false tax returns. The indictment accuses Ver of hiding Bitcoin ownership, not reporting important company valuations, and evading nearly $50 million in estimated taxes.

Court documents unveilsRoger Ver’s alleged tax evasion scheme

The court documents maintain that Ver, who at the time resided in Santa Clara, California, was the owner of two companies, Memory Dealers Inc. and Agilestar Inc., which resold computer and networking hardware. Verkammen’s bitcoin history goes back to 2011 when he allegedly bought the first bitcoins for himself and his firms. He also called for coins in his articles and blogs, where he got the nickname “Bitcoin Jesus.”

He reportedly abandoned her US citizenship in 2014 by becoming a citizen of St. Kitts and Nevis, just two years after obtaining her citizenship. He moved his Bitcoin assets to the wallet of a family member who had not reported capital gains. 

Under U.S. law, he was also required to echo that. The indictment claims that Ver intentionally underreported his asset in her appraisal by his law firm and appraiser; thus, the jurors suspected tax violation.

False tax returns and undisclosed Bitcoin sales

In February 2014, 73,000 bitcoins were estimated at his firm’s disposal. This fact is still in doubt, as Ver didn’t report any Bitcoin on their tax files. Moreover, Ver allegedly sold off tens of thousands of bitcoins in 2017, which roughly translated to around $240M. 

He never reported these transactions and missed paying the taxes due to the profits incurred. The indictment charges that Ver had committed acts that caused a minimum loss to the IRS not less than $48 million, according to the law. US DoJ Tax Division Acting Deputy Assistant Attorney General Stuart M. Goldberg and US Attorneys Martin Estrada for the Central District of California published the case today. 

The IRS Criminal Investigation Cybercrimes Unit is spearheading the cybercrime arena. Matthew J. Kluge, an Assistant Chief in the Tax Division of the Justice Department, James Anthony, a Trial Attorney, and James, an aide US Attorney, have been essential players. Besides C. Hughes, the lawyer for the Central District of California, some well-qualified personnel are involved in the discussion as well. 

He now faces extradition to the U.S. as a possible option. Roger Ver’s case for tax fraud, evasion, and false filing of tax returns was the second one in a row that emphasized that tax law submission is obligatory and should keep up with the speed of the coin industry development. This allegation sheds some light on the difficulty in regulating digital assets and the authorities’ persistence in confirming responsibility regarding the individuality’s whole sector. While the instance amasses, it may also revive awareness of the unfriendly, anti-investment practices in investors and businesses.