Roger Ver’s Fight Against Bitcoin Indictment Explained

Roger Ver is appealing a US criminal complaint accusing him of evading $240 million in taxes on Bitcoin sales.

Roger Ver, who was arrested in Barcelona in April 2024, has now filed a petition to reject the indictment. He was indicted by the U.S. Attorney for the Central District of California on eight counts of evading more than $48 million in taxes, FOX Business reported. The charges come after the former CEO of Bitcoin.com underreported his Bitcoin holdings and other holdings in 2014. His lawyers argue that the indictment was influenced by government bias.

Ver’s motion to dismiss: Allegations of violation of attorney-client privilege

Ver’s attorneys allege that the Justice Department improperly accessed confidential attorney-client communications and failed to disclose key evidence to the grand jury. Ver claims he did what any reasonable person would do by following professional advice based on the limited regulatory guidance available on cryptocurrencies at the time.

Ver claimed that his actions were lawful, stating that he anticipated becoming a political target for the IRS after his deportation. Additionally, the defense team notes that the IRS only began issuing clear instructions on crypto taxes after Ver moved to Spain. Only then could a fair market valuation be applied to Bitcoin assets; This was difficult to determine due to the asset’s low liquidity and high volatility at the time.

The indictment, announced by the US Department of Justice earlier this year, includes the following statements: “The indictment… alleges that as of June 2017, two of Ver’s companies continued to possess approximately 70,000 Bitcoins. It was also claimed that he had to pay a so-called “exit tax” on these capital gains. As of February 4, 2014, Ver and his companies allegedly owned approximately 131,000 Bitcoins traded at approximately $871 each on several major exchanges. MemoryDealers and Agilestar allegedly hold approximately 73,000 of these bitcoins.

The case attracted a lot of attention from the crypto community, with many condemning the US Department of Justice for its enforcement-first approach to digital assets, especially under the Biden administration. Critics such as civil rights attorney Robert Barnes, who supported Ver’s case, believe the charges represent selective enforcement. “This is yet another example of laws being implemented against the crypto industry targeting individuals based on political considerations rather than clear evidence of wrongdoing,” Barnes said.

Ver’s motion to dismiss came at a time when the United States was preparing for a new administration; Many in the cryptocurrency industry see this as much more suitable for digital assets. The expectation under the incoming Trump administration is to take a less stringent approach to cases like Ver’s, especially those deemed politically motivated in nature. Ver’s trial is scheduled for February 2025 and is subject to extradition.