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Roger Ver is contesting a U.S. criminal indictment accusing him of evading $240 million in taxes from Bitcoin sales.
Roger Ver, who was arrested in Barcelona in April 2024, has now filed a motion to dismiss the indictment. He was indicted on eight counts by the U.S. Attorney for the Central District of California for evading over $48 million in taxes, reports FOX Business. The charges followed after the former CEO of Bitcoin.com underreported his Bitcoin holdings and other assets in 2014. Now, his lawyers argue that the indictment was influenced by government bias.
Ver’s motion to dismiss: Claims of attorney-client privilege violations
Ver’s attorneys claim that the Department of Justice inappropriately accessed confidential attorney-client communications and did not reveal key evidence to the grand jury. Ver claims he did what any reasonable person would do, following professional advice based on the limited regulatory guidance available at the time regarding cryptocurrencies.
Ver stated that he anticipated being a political target for the IRS after his expatriation, claiming his actions were in accordance with the law. Furthermore, the defense team states that only after Ver’s move to Spain did the IRS start to issue clear directions on crypto-taxes. Only then could a fair market valuation for his Bitcoin holdings be applied, which was difficult to determine due to the asset’s low liquidity and high volatility at the time.
The indictment, which was unsealed earlier this year by the U.S Department of Justice, reads, “The indictment..alleges that by June 2017, Ver’s two companies continued to own approximately 70,000 bitcoins. He was also allegedly required to pay a tax – referred to as an “exit tax” – on those capital gains. By Feb. 4, 2014, Ver and his companies allegedly owned approximately 131,000 bitcoins that traded on several large exchanges for around $871 each. MemoryDealers and Agilestar allegedly held approximately 73,000 of those bitcoins.”
The case has attracted a lot of attention from the crypto community, with many condemning the U.S. DOJ for its enforcement-first approach to digital assets, especially under the Biden government. Critics like Robert Barnes, a civil rights attorney who supports Ver’s case, believe the charges represent selective enforcement. “This is another example of lawfare against the crypto industry, targeting individuals based on political considerations rather than clear evidence of wrongdoing,” said Barnes.
The motion to dismiss that Ver filed comes as the U.S. is getting ready for a fresh administration, which many in the cryptocurrency industry see as much more favorable to digital assets. Under the incoming Trump administration, the expectation is for a less staunch approach to be taken with regard to cases like Ver’s, especially those deemed politically motivated in nature. Ver’s trial is set to occur in February of 2025 and hinges upon extradition.