Roger Keith Ver, a prominent early investor in Bitcoin who gained immense wealth from the cryptocurrency, has been arrested on charges of fraud. The 45-year-old, also known as “Bitcoin Jesus,” was taken into custody in Spain over the weekend. Ver, who previously resided in Santa Clara, California, and Tokyo, now faces three counts of mail fraud, two counts of tax evasion, and three counts of subscribing to a false tax return, as per the United States Department of Justice.
Ver, an early adopter of Bitcoin, amassed a significant number of coins through his businesses that sold computer and networking equipment. He actively promoted Bitcoin online, earning him the moniker “Bitcoin Jesus.” In 2014, Ver renounced his U.S. citizenship and became a citizen of St. Kitts, a Caribbean island, as part of an expatriation effort. However, he allegedly failed to accurately report his capital gains from the sale of his assets, including Bitcoin, and pay the required taxes.
According to authorities, Ver owned approximately 131,000 whole bitcoins through his companies, with around 73,000 coins held by the businesses. He reportedly undervalued his assets and provided misleading information to conceal the true extent of his cryptocurrency holdings. Despite transferring and selling a large portion of his bitcoins for millions of dollars, Ver allegedly failed to report these transactions to the IRS or pay taxes on them.
The Department of Justice claims that Ver’s actions resulted in a loss of at least $48 million to the IRS. If convicted on all charges, he could face up to 20 years in federal prison for mail fraud, five years for tax evasion, and three years for subscribing to a false tax return. The case is currently under investigation by the IRS.
In a 2014 profile, Ver was lauded for attracting wealthy crypto investors to become citizens of St. Kitts due to its favorable tax laws. As of today, a single Bitcoin is valued at over $60,000.