US: Roger Ver moves to dismiss US tax evasion charges as ‘unconstitutional’

Roger Ver argued that the IRS exit tax for renounced US citizens with over $2 million in assets is unconstitutional and “impermissibly vague.”

Roger Ver — also known as Bitcoin Jesus — urged a United States judge to dismiss a case alleging he committed tax evasion when selling millions of dollars in Bitcoin, claiming the case is unconstitutional.

In a Dec. 3 filing to a California federal court, Ver argued that the Internal Revenue Service’s (IRS) exit tax for those who renounce their US citizenship with more than $2 million in assets is unconstitutional and “inscrutably vague.”

“The ‘exit tax’ at issue violates both the Apportionment Clause and the Due Process Clause of the Constitution […] the charges also rely on provisions of the U.S. tax laws that were, at all relevant times, inscrutably vague as to their application to digital assets of the kind that underlie the charges,” Ver’s lawyers argued.

The IRS’ exit tax aims to ensure that US citizens pay all required taxes before renouncing their citizenship and withdrawing from the country’s tax system.

Ver also claimed prosecutors had “unlawfully” interrogated one of his lawyers and ignored crucial documents, which he said showed he had no intent to file a fraudulent tax return.

On April 30, the US Attorney’s Office in Los Angeles arrested Ver in Spain and charged him with tax evasion and fraud, alleging he dodged more than $48 million in taxes by failing to report capital gains on the sale of “tens of thousands” of Bitcoin BTC for $240 million in cash.

Ver claimed there were several impediments to submitting an appropriate exit tax request, including a lack of liquid markets for Bitcoin at the time. Still, the US government remained adamant that Ver filed a fraudulent and false exit tax after renouncing his US citizenship for a Japanese one in 2014.

Ver has been charged with mail fraud, tax evasion and filing false tax returns. He faces a maximum sentence of 30 years in federal prison if found guilty on all counts.

Ver was one of the earliest advocates of Bitcoin, buying it in droves in 2011 when it was under $1 and acting as an evangelist for digital assets. In 2017, he emerged as a major Bitcoin Cash (BCH) proponent after the Bitcoin network underwent a hard fork.

Ver was later embroiled in a 2022 scandal with CoinFlex, which claimed that he owed the platform $47 million in USD Coin.

In 2002 and 2003, he spent 10 months in federal prison in the US for selling explosives on eBay.

The US Department of Justice did not immediately respond to a request for comment.

12 March 2024

CAREY OLSEN: Bermudian lawyer Yan-Xia Rogers returns home to join Carey Olsen

Press Release from Carey Olsen, Tuesday 12 March, 2024.  Carey Olsen is pleased to announce that Yan-Xia Rogers has returned home to Bermuda to join the firm’s corporate team. Yan-Xia will specialise

Read More
22 November 2024

CAREY OLSEN: Carey Olsen expands Guernsey employment team with hire of associate Danielle Naseem

Press Release from Carey Olsen, Friday 22 November, 2024. Carey Olsen is pleased to announce that associate Danielle Naseem has joined the firm’s employment team in Guernsey. Danielle joins from

Read More
8 August 2024

US: Hunter Biden Accused in U.S. Criminal Tax Case Over Romanian Payments

Prosecutors allege Hunter Biden received payments from Romanian businessman Gabriel Popoviciu, aiming to influence U.S. government agencies amid a criminal probe in Romania. The trial is set for Sept.

Read More
5 June 2024

UAE: DFSA enhances its Crypto Token framework, fostering innovation

The Dubai Financial Services Authority (DFSA) today announced some key amendments to its Crypto Token regime. These changes stem from the proposals outlined in “Consultation Paper 153 – Updates

Read More