Key Points
- Roger Ver is challenging a U.S. indictment accusing him of evading $240 million in Bitcoin-related taxes.
- Ver’s lawyers argue that the indictment was influenced by government bias and violations of attorney-client privilege.
Roger Ver is currently embroiled in a legal battle against a U.S. indictment that accuses him of evading a significant amount in taxes from Bitcoin sales. Ver was arrested in Barcelona in April 2024 and has since filed a motion to dismiss the indictment.
He was indicted on eight counts by the U.S. Attorney for the Central District of California for allegedly evading over $48 million in taxes. This indictment came after Ver, the former CEO of Bitcoin.com, was accused of underreporting his Bitcoin holdings and other assets in 2014. His legal team now argues that the indictment was influenced by government bias.
Claims of Attorney-Client Privilege Violations
Ver’s legal team alleges that the Department of Justice inappropriately accessed confidential attorney-client communications and did not reveal key evidence to the grand jury. They argue that Ver acted as any reasonable person would, following professional advice based on the limited regulatory guidance available at the time regarding cryptocurrencies.
Ver has stated that he expected to become a political target for the IRS after his expatriation, and insists his actions were in accordance with the law. His defense team argues that clear directions on crypto-taxes from the IRS only started to emerge after Ver’s move to Spain. They contend that a fair market valuation for his Bitcoin holdings could only then be applied, due to the asset’s low liquidity and high volatility at the time.
The indictment, unsealed earlier this year by the U.S Department of Justice, alleges that as of June 2017, Ver’s two companies still owned approximately 70,000 bitcoins. He was also allegedly required to pay an “exit tax” on those capital gains. By Feb. 4, 2014, Ver and his companies allegedly owned approximately 131,000 bitcoins, trading on several large exchanges for around $871 each.
Crypto Community Reaction and Future Expectations
This case has sparked significant interest from the crypto community, with many criticizing the U.S. DOJ for its enforcement-first approach to digital assets. This criticism has been particularly pronounced under the Biden administration, which has been perceived as having an ‘anti-crypto‘ stance. Supporters of Ver’s case, including civil rights attorney Robert Barnes, believe the charges represent selective enforcement.
The motion to dismiss that Ver filed comes as the U.S. prepares for a new administration, which is generally seen by the cryptocurrency industry as more favorable to digital assets. Under the incoming Trump administration, many expect a less strict approach to cases like Ver’s, particularly those seen as politically motivated. Ver’s trial is set to take place in February of 2025 and hinges upon extradition.