Attorneys for Roger Ver have filed a motion to dismiss the criminal indictment against the early Bitcoin adopter on Tuesday for tax evasion and allegedly failing to pay $50 million in unpaid taxes.
Known in the crypto space as "Bitcoin Jesus" for his evangelism of Bitcoin, Ver was charged in April by the U.S. Department of Justice with tax evasion and subsequently arrested by Spanish authorities.
The motion to dismiss coincides with a shifting regulatory environment, as the U.S. government, including the Justice Department, faces significant pro-crypto policy changes under the incoming Trump Administration in January.
“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 reads.
“Fundamentally, on the false and anachronistic pretense that U.S. tax rules provided meaningful guidance to those who, like Ver, were among the pioneers in the now mainstream cryptocurrency economy.”
The DOJ’s indictment alleges that Ver failed to pay taxes on the sale of approximately $240 million worth of Bitcoin in 2017 and underreported the value of his Bitcoin holdings in 2014 when he renounced his U.S. citizenship.
A spokesperson for Ver told Decrypt the government’s charges in its case are "unconstitutional, illogical, and wrong," characterizing it as a "disturbing example of government overreach and hostility to one of the world’s earliest crypto entrepreneurs."
"It is truly alarming to see that the criminal arm of the IRS can torment a former citizen, who actually paid millions in taxes based on a draconian “exit tax” and scrupulously followed the advice of his tax professionals," they said.
In the motion, Ver’s lawyers said he and his former counsel “engaged in good-faith discussions” with the DOJ. However, amid these discussions, Ver’s lawyers said the government secretly indicted him while pretending to be still interested in negotiating.
The motion also asserts that unclear and vague U.S. tax regulations played a significant role in Ver's alleged failure to pay taxes. Ver’s attorneys argued that the legal framework lacks sufficient guidance for average taxpayers and tax law experts, making it difficult to determine the boundaries of criminal liability.
“This task of navigating regulatory uncertainty posed special difficulties in the case of cryptocurrencies, particularly for BTC in its infancy,” the attorneys said. “The United States government—though not the DOJ or IRS—specifically acknowledged this difficulty.”
Ver’s legal team claims that the DOJ continues to selectively quote and incorporate documents undermining its case and violating Ver’s attorney-client privilege. In May, Ver was released on $160,000 bail in Spain while he awaits a decision on his extradition to the U.S.
“This prosecution must end,” Ver’s attorneys said. “The evidence that the government withheld from the grand jury and with which it has been recently provided make clear that this indictment was obtained and continues to be prosecuted without regard to fundamental fairness or due process.”
Edited by Sebastian Sinclair
Editor's note: Adds comments from Ver's spokesperson. Decrypt has contacted the IRS and DOJ for comment.