Roger Ver Challenges Tax Evasion Allegations Over Bitcoin Transactions

On December 3, Bitcoin.com founder Roger Ver filed a motion in a California federal court to dismiss a tax evasion case related to bitcoin transactions, initiated by the U.S. Attorney’s Office.

He argues that the IRS-imposed exit tax for individuals renouncing U.S. citizenship with assets exceeding $2 million is unconstitutional and “incomprehensibly vague.” Ver renounced his U.S. citizenship in favor of St. Kitts and Nevis in 2014.

“The tax in question violates both the apportionment clause and the due process clause of the Constitution […]. The charges also rely on provisions of U.S. tax law that were, at all relevant times, incomprehensibly vague regarding their application to digital assets of the type underlying the charges,” the statement reads. 

Ver added that prosecutors “illegally” questioned one of his attorneys and ignored crucial documents that demonstrated he had no intention to file a fraudulent tax return. 

According to him, he faced several significant obstacles in filing a proper tax request, including the lack of liquid markets for bitcoin at the time. 

Back in late April, Ver was arrested in Spain on charges by the U.S. Department of Justice for tax fraud, resulting in losses amounting to $48 million. 

Authorities claim the entrepreneur failed to declare capital gains from selling “tens of thousands” of bitcoins for $240 million in cash. He faces up to 30 years in federal prison.