Attorneys for Roger Ver have filed a movement to dismiss the felony indictment in opposition to the early Bitcoin adopter on Tuesday for tax evasion and allegedly failing to pay $50 million in unpaid taxes.
Recognized within the crypto house as "Bitcoin Jesus" for his evangelism of Bitcoin, Ver was charged in April by the U.S. Division of Justice with tax evasion and subsequently arrested by Spanish authorities.
The movement to dismiss coincides with a shifting regulatory setting, because the U.S. authorities, together with the Justice Division, faces vital pro-crypto coverage modifications underneath the incoming Trump Administration in January.
“The government’s charges against Roger Ver rely on violations of his rights; misleading, selective quotations of communications presented to the grand jury,” the movement reads.
“Fundamentally, on the false and anachronistic pretense that U.S. tax rules provided meaningful guidance to those who, like Ver, were among the pioneers in the now mainstream cryptocurrency economy.”
The DOJ’s indictment alleges that Ver didn’t pay taxes on the sale of roughly $240 million price of Bitcoin in 2017 and underreported the worth of his Bitcoin holdings in 2014 when he renounced his U.S. citizenship.
A spokesperson for Ver advised Decrypt the federal government’s expenses in its case are "unconstitutional, illogical, and wrong," characterizing it as a "disturbing example of government overreach and hostility to one of the world’s earliest crypto entrepreneurs."
"It is truly alarming to see that the criminal arm of the IRS can torment a former citizen, who actually paid millions in taxes based on a draconian “exit tax” and scrupulously followed the advice of his tax professionals," they stated.
Within the movement, Ver’s legal professionals stated he and his former counsel “engaged in good-faith discussions” with the DOJ. Nonetheless, amid these discussions, Ver’s legal professionals stated the federal government secretly indicted him whereas pretending to be nonetheless concerned about negotiating.
The movement additionally asserts that unclear and obscure U.S. tax laws performed a major function in Ver's alleged failure to pay taxes. Ver’s attorneys argued that the authorized framework lacks adequate steerage for common taxpayers and tax regulation consultants, making it tough to find out the boundaries of felony legal responsibility.
“This task of navigating regulatory uncertainty posed special difficulties in the case of cryptocurrencies, particularly for BTC in its infancy,” the attorneys stated. “The United States government—though not the DOJ or IRS—specifically acknowledged this difficulty.”
Ver’s authorized workforce claims that the DOJ continues to selectively quote and incorporate paperwork undermining its case and violating Ver’s attorney-client privilege. In Might, Ver was launched on $160,000 bail in Spain whereas he awaits a call on his extradition to the U.S.
“This prosecution must end,” Ver’s attorneys stated. “The evidence that the government withheld from the grand jury and with which it has been recently provided make clear that this indictment was obtained and continues to be prosecuted without regard to fundamental fairness or due process.”
Edited by Sebastian Sinclair
Editor's observe: Provides feedback from Ver's spokesperson. Decrypt has contacted the IRS and DOJ for remark.