‘Bitcoin Jesus’ admits misconduct, agrees to $50 Million deferred prosecution deal

CALIFORNIA – The U.S. Department of Justice (DOJ) announced October 14 that Roger Ver, an early bitcoin investor nicknamed “Bitcoin Jesus,” has entered a deferred prosecution agreement over federal tax charges.

Under the agreement, Ver has paid nearly $50 million in back taxes, penalties, and interest for failing to report his bitcoin holdings when he expatriated from the U.S. in 2014.

The government has moved to dismiss Ver’s indictment.

According to the deferred prosecution agreement, Ver began acquiring bitcoins in 2011 and actively promoted them, earning the nickname “Bitcoin Jesus.” In March 2014, Ver renounced his U.S. citizenship after gaining citizenship in St. Kitts and Nevis.

Because of his net worth, Ver was required to file expatriation-related tax returns and pay taxes on capital gains from his worldwide assets, including bitcoins.

In the agreement, Ver admitted that his May 2016 returns failed to report all his bitcoins and pay the required capital gains tax.

Ver’s unreported bitcoin capital gains led to a $16.86 million loss for the U.S.

He acknowledged that his tax understatement from unreported bitcoins was willful, meaning he intentionally violated a legal duty.

Ver admitted he owed over $12 million in penalties, plus interest on the taxes and penalties.

‘Every person, whether you’re a millionaire or not, is required by law to pay taxes’

Acting United States attorney Bill Essayli said Ver is accepting responsibility for his actions.

“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,” Essayli said.

IRS-Criminal Investigation’s Kareem Carter said that no matter the technology or asset, the agency will follow the money, ensure compliance, and safeguard the tax system.