Roger Ver, one of the earliest and most controversial champions of Bitcoin (BTC), has agreed to pay $49.9 million to settle a U.S. tax fraud case, according to a Department of Justice (DOJ) filing released on October 14.
The settlement, made possible by a deferred prosecution agreement, ends mail fraud and tax evasion charges stemming from Barr’s decision to renounce his U.S. citizenship in 2014.
Why the IRS went after “Bitcoin Jesus”
Barr, often referred to as the “Bitcoin Yes” for freely distributing BTC in the early 2010s to popularize adoption, failed to properly disclose the full amount of his Bitcoin assets while stationed overseas.
By law, individuals who renounce their U.S. citizenship must pay an “exit tax” on their worldwide assets. Prosecutors alleged that Barr intentionally concealed his stock holdings, causing a $16.8 million federal tax loss.
Adding the fraud fines and unpaid interest, his debt rose to nearly $50 million.
US citizenship change caused tax conflict
The California-born investor became a citizen of St. Kitts and Nevis in 2014 and filed an expatriation-related return in 2016. The Department of Justice said these returns intentionally undervalued Bitcoin assets and violated federal tax law.
Despite his status as a leading crypto evangelist, Barr’s inaction has put him in direct conflict with the IRS at a time when regulators are increasing their focus on digital assets.
Authorities warn crypto investors
US officials stressed that digital asset holders face similar obligations as traditional taxpayers.
“Whether it’s dollars or digital assets, you must file accurate tax returns and pay the taxes you owe,” said Deputy Attorney General Keetan D. Bild.
The settlement spares Mr. Ver a prison sentence but forces him to part with most of his crypto assets, ending a decade-long dispute, but also solidifying the IRS’ position that crypto profits, no matter how early, remain taxable and enforceable.
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