The recent arrest of Roger Ver, an early Bitcoin investor, has shaken the cryptocurrency community. The U.S. Department of Justice accused Ver of mail fraud, tax evasion and filing fake returns to avoid paying at least $48 million in taxes.
Ver, who earned the moniker “Bitcoin Jesus” after spreading the word about Bitcoin in its early days, was arrested in Spain this weekend and might be extradited.
The allegations are the latest brought by U.S. authorities against prominent crypto entrepreneurs. Changpeng Zhao, cofounder of Binance, the world’s largest crypto exchange, was sentenced to four months in jail on Tuesday. Sam Bankman-Fried, the former CEO of the FTX crypto exchange, received 25 years in prison.
The news of Ver’s arrest has sent waves through the crypto community, provoking reactions from many, including Galaxy CEO and billionaire investor Mike Novogratz.
Novogratz called Roger Ver’s arrest a “sad one.” U.S. authorities accuse Ver of failing to record capital gains and pay taxes on his Bitcoin holdings, which he began acquiring in 2011.
The Roger Ver story is a sad one. He didn’t/ doesn’t trust the US govt. Of course, if you served hard time for selling firecrackers over the internet you might not either. He renounced his citizenship soon after serving his time. He hired lawyers and filed the paperwork.…
— Mike Novogratz (@novogratz) May 1, 2024
Ver renounced his U.S. citizenship in 2014 and became a citizen of St. Kitts and Nevis, although he was still obligated to file U.S. tax returns that included earnings from certain assets, such as Bitcoin.
Novogratz highlights the possibilities in the case, stating that “the feds” often go after cases with more than a 95% chance of winning.
Expressing hopes that a settlement is reached quickly, Novogratz acknowledges Ver as a pioneer in the space, funding projects that helped create the crypto industry. He further added that while he disagreed with the Bitcoin evangelist’s preoccupation with Bitcoin Cash, he always found him to be nice and helpful.
“Hoping Roger reaches a settlement quickly and moves on with this. He was a pioneer in the space and funded lots of projects that helped create our industry. I really didn’t agree with him on his Bitcoin Cash obsession but always found him kind and helpful,” Novogratz wrote.
