Bitcoin Jesus Challenges US Tax Evasion Charges, Calls ‘Exit Tax’ Unconstitutional

Early Bitcoin investor Roger Ver, also known as Bitcoin Jesus, has filed a motion to dismiss tax evasion charges filed by U.S. prosecutors, arguing that the case against him is unconstitutional.

Ver was charged with tax evasion by the U.S. Department of Justice (DOJ) in April this year, accusing him of failing to pay nearly $50 million in taxes. Ver was arrested in February while attending a crypto conference in Barcelona.

The DOJ’s indictment claims that Ver did not report taxes on the sale of around $240 million in Bitcoin in 2017 while also underreporting the value of his Bitcoin assets. This alleged misreporting is said to have enabled him to avoid a higher exit tax.

Ver’s motion to dismiss argued that the Internal Revenue Service’s (IRS) “exit tax” was unconstitutional and “inscrutably vague.” Bitcoin Jesus renounced his U.S. citizenship in 2014 and subsequently acquired Japanese citizenship.

The IRS “exit tax” is imposed on U.S. citizens who renounce their citizenship, specifically targeting individuals with assets exceeding $2 million. The tax is intended to ensure that those who leave the U.S. tax system pay taxes on any unrealized capital gains from their assets before relinquishing their citizenship.

Additionally, the motion to dismiss also argued that U.S. prosecutors failed to consider key documents that Ver asserts prove he had no intention of submitting a fraudulent tax return. He stated that the absence of liquid Bitcoin markets at the time, along with other obstacles, contributed to the difficulty in filing a proper exit tax request.

“The government’s charges against Roger Ver rely on violations of his rights; misleading, selective quotations of communications presented to the grand jury,” the motion stated.

The U.S. government maintains that Ver submitted a fraudulent and “false” exit tax filing. The motion to dismiss is currently under review by the U.S. District Court for the Central District of California.

Ver has been charged with mail fraud, tax evasion, and filing false tax returns. If convicted on all charges, the so-called Bitcoin Jesus faces a potential maximum sentence of up to 30 years in federal prison.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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