Roger Ver, an early bitcoin investor famously known as “Bitcoin Jesus,” has reached a settlement with the U.S. Department of Justice to resolve federal tax charges, marking a significant development in the scrutiny of cryptocurrency-related taxes.
Under a deferred prosecution agreement, Ver has agreed to pay the Internal Revenue Service (IRS) nearly $50 million in back taxes, penalties, and interest. In exchange, the government has moved to dismiss the indictment against him.
The charges stem from Ver’s failure to accurately report his bitcoin holdings on tax returns following his expatriation from the United States in 2014, when he obtained citizenship in St. Kitts and Nevis.
According to the agreement, Ver admitted that in May 2016, he did not report all of his bitcoins and failed to pay the required capital gains taxes, causing the United States to lose over $16 million.
The understated taxes were deemed willful, indicating an intentional violation of legal obligations. This triggered additional penalties of more than $12 million, along with accrued interest.
Acting United States Attorney Bill Essayli emphasized the broader implications of the case, stating, “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.”
Associate Deputy Attorney General Ketan D. Bhirud added, “Whether you deal in dollars or digital assets, you must file accurate tax returns and pay what you owe.”
The case, investigated by the IRS Criminal Investigation’s Cyber Crimes Unit in Washington, D.C., underscores increasing regulatory scrutiny over cryptocurrency transactions.
As digital assets gain wider adoption, tax authorities are prioritizing enforcement to ensure compliance and maintain market integrity.
Ver’s resolution demonstrates that even high-profile cryptocurrency figures are not exempt from tax laws, sending a clear message to the industry about the legal obligations surrounding digital asset holdings.
Assistant U.S. Attorneys James C. Hughes, Matthew J. Kluge, and Peter J. Anthony prosecuted the case, marking a milestone in the oversight of cryptocurrency taxation in the United States.