Roger Ver's Legal Team Challenges Indictment in Landmark Crypto Tax Case
Roger Ver is fighting back against what his legal team describes as an overreach by the U.S. government. Ver, an influential figure in and outside of crypto, with over 740,000 followers on X, was arrested in February while attending a cryptocurrency conference in Barcelona, sparking a wave of support and criticism from industry leaders who see this as part of the Biden administration's alleged "war on crypto."
The U.S. Attorney for the Central District of California has charged Ver with an eight-count criminal indictment, accusing him of evading nearly $50 million in taxes. The charges claim Ver underreported the value of his Bitcoin when he renounced his U.S. citizenship in 2014 to move to Saint Kitts and Nevis.
Legal Battle Against Government Overreach
Ver's defense, represented by attorneys from prestigious law firms Steptoe LLP and Kimura London & White, has now moved to dismiss the indictment. They argue that the charges are not only politically motivated and unconstitutional, citing a lack of clear regulatory guidance in the crypto space during the time in question, but also that they are objectively false. The legal strategy hinges on the hope that the incoming Trump administration, known for its more favorable stance towards cryptocurrencies, might reconsider this case as part of broader policy shifts towards digital assets.
Ver has long been a vocal critic of U.S. government policies on cryptocurrency regulation, which might have painted a target on him, according to his legal team and supporters within the crypto community. His nickname "Bitcoin Jesus" stems from his early investments and evangelism for Bitcoin when it was still in its infancy, trading at fractions of a cent to a few dollars per coin. His influence extends beyond mere investment; he has been instrumental in the founding and funding of several key crypto ventures including Ripple Labs, Blockchain.com, and his own company, Bitcoin.com.
The Case for Dismissal
In their motion to dismiss, Ver's lawyers argue several points. They claim that the government's use of allegedly improperly obtained attorney-client communications to build their case is a violation of Ver's right to due process. Furthermore, they assert that the IRS's guidance on taxing digital assets was ambiguous at best during Ver's expatriation, suggesting that any discrepancies in tax reporting were due to this lack of clarity rather than malicious intent.
Ver himself has maintained that he sought to comply with all legal obligations, hiring top-tier legal and accounting help to navigate the murky waters of crypto taxation. "I always knew I’d be a political target for the IRS and law enforcement after I expatriated," Ver stated, emphasizing his efforts to ensure his tax affairs were handled correctly to avoid future disputes.
The indictment details how Ver allegedly underreported the fair market value of his Bitcoin and business assets to lessen his exit tax liability. However, his defense counters that at the time of expatriation, the Bitcoin market was so small and illiquid that a large sale could have tanked the price, necessitating third-party appraisals for a fair valuation.
As Ver awaits possible extradition from Spain, where he is currently out on bail, the case has become a focal point for debates on the regulation of cryptocurrencies and the rights of expatriates. With a trial date set for February 3, 2025, and with the backdrop of a changing political landscape, the outcome of this case could set significant precedents for how cryptocurrency transactions are taxed and regulated in the future.
In the meantime, his supporters have launched a campaign to help bring awareness to his cause, called Free Roger, where supporters can sign a petition at FreeRogerNow.org which has already garnered over 6,000 signatures.