Roger Ver Renounces US Citizenship and Faces Nearly $50 Million Exit Tax

On October 18, the U.S. Department of Justice reached a deferred prosecution agreement with "Bitcoin Jesus" Roger Ver, dismissing fraud and tax evasion charges against him. In exchange, Ver is required to pay a maximum fine of $49.9 million. Roger Ver is an early evangelist of Bitcoin, having purchased a large amount of Bitcoin for less than $3 million in 2011. In February 2014, to avoid high tax burdens, he renounced his U.S. citizenship after acquiring citizenship in Saint Kitts and Nevis, at which time he held at least 131,000 Bitcoins in conjunction with his company, valued at over $70 million based on the price at that time. However, the U.S. "exit tax" policy prevented him from achieving his goal. According to U.S. tax law, expatriates must treat their global assets as if they were sold the day before renunciation and pay capital gains tax. Although Ver reported paying $1.03 million in taxes, he did not report the Bitcoins he personally held and severely undervalued the company's assets. Ten years later, the IRS confirmed his tax evasion, ultimately forcing him to pay back a maximum of $49.9 million in taxes, penalties, and interest, which is 48 times the amount he reported paying in taxes that year.

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