Roger Ver pays $50 million to settle case against tax evasion of bitcoins, DOJ abandons charges under deferred prosecution agreement.
An early bitcoin investor, Roger Ver, also called Bitcoin Jesus, admitted to not reporting his bitcoin to tax authorities willfully.
The U.S. Department of Justice (DOJ) has dismissed its indictment against Ver because he has agreed to pay close to $50 million in taxes, penalties, and interest as part of the back taxes.
Ver, who is famous in the cryptocurrency community due to his extensive promotion of Bitcoin since 2011, left the United States in 2014 and became a citizen of St. Kitts and Nevis.
Ver was supposed to declare all his assets, including his large bitcoin holdings, as required by law during his expatriation and pay capital gains tax on their constructive sale.
Rather, he minimized his ownership of bitcoins on tax returns and failed to declare tax on those assets, and this contributed to a huge loss of tax revenue to the U.S. government.
Bitcoin Jesus’ $50 Million Penalty Revealed
The deferred prosecution agreement between Ver and the DOJ affirmed that his failure to file his cryptocurrency assets was a willful violation of tax regulations.
The indictment meant the deliberate violation of the established legal responsibility, which led to the IRS losing approximately 17 million dollars in taxation.
In addition to this tax payable, Ver paid penalties of more than 12 million dollars and accrued interest, which amounted to about 50 million dollars.
The U.S. Acting U.S. Attorney, Bill Essayli, emphasized the need to comply with taxes as everyone is required to pay their taxes irrespective of assets and affluence.
He praised Ver for accepting accountability and finalizing the issue, which sent a strong signal concerning the enforcement of taxes on digital products.
DOJ Ends Legal Battle, Sets Precedent on Crypto Taxes
After Ver paid the whole amount of money, the DOJ proceeded to seek to dismiss the federal indictment against him. According to an Associate Deputy Attorney General Ketan D. Bhirud, such a result supports the need to have crypto investors submit proper returns and remit the tax they owe on digital assets.
The resolution shows that authorities take crypto tax evasion as seriously as tax evasion involving traditional assets.
Investigation by the IRS Criminal Investigation unit, Cyber Crimes department showed that even high-level technology or the type of asset cannot offer protection against tax laws.
This case serves as a strong reminder that the government is paying close attention to cryptocurrency tax compliance.
The U.S. government is now confronting Roger Ver, once praised as a passionate advocate for expanding Bitcoin’s use, over tax evasion tied to his massive cryptocurrency holdings.
His federal issues ended in the almost $50 million settlement, which rocked the crypto community on the value of openness and legal adherence.
The post Crypto News Today: Roger Ver Admits Tax Failures, DOJ Drops Case After $50M Pact appeared first on Live Bitcoin News.