MemoryDealers aka Roger Ver Arrested!

[dkbit98]

We are officially at war!
One of the Bitcointalk forum members known as MemoryDealers aka Roger Ver was allegedly arrested in Spain for tax fraud.
Everyone knows him since the early days of Bitcoin, and later he supported BCH as one of the bitcoin forks with larger block size.
I was never one of his supporters but I respect what he did in early says of Bitcoin.

This was his last post in bitcointalk forum:

You can see what you described at https://map.bitcoin.com/, although many places are using Bitcoin Cash over Bitcoin at this point due to the poor user experience on BTC.

I wrote a whole book on what happened too: https://www.amazon.com/Hijacking-Bitcoin-Hidden-History-BTC/dp/B0CXWBCWDR/ref=zg_bs_g_10806607011_d_sccl_1/133-2063248-2793037?psc=1

Early Bitcoin Investor Charged with Tax Fraud

Man Known as “Bitcoin Jesus” Evaded Nearly $50M in Taxes
WASHINGTON – An indictment was unsealed yesterday charging Roger Ver, an early investor in bitcoins, with mail fraud, tax evasion and filing false tax returns. Ver was arrested this weekend in Spain based on the U.S. criminal charges. The United States will seek Ver’s extradition to stand trial in the United States.

According to the indictment, Ver formerly of Santa Clara, California, owned MemoryDealers.com Inc. and Agilestar.com Inc., two companies that sold computer and networking equipment. Starting in 2011, Ver allegedly began acquiring bitcoins for himself and his companies. He also allegedly avidly promoted bitcoins, even obtaining the moniker “Bitcoin Jesus.”

On Feb. 4, 2014, Ver allegedly obtained citizenship in St. Kitts and Nevis and shortly thereafter renounced his U.S. citizenship in a process known as expatriation. As a result of his expatriation, Ver allegedly was required under U.S. law to file tax returns that reported capital gains from the constructive sale of his world-wide assets, including the bitcoins, and to report the fair market value of his assets. 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.

Ver allegedly hired a law firm to assist him with his expatriation and to prepare his expatriation-related tax returns. Ver also allegedly hired an appraiser to value his two companies. Ver allegedly provided or caused to be provided false or misleading information to the law firm and appraiser that concealed the true number of bitcoins he and his companies owned. As a result, the law firm allegedly prepared and filed false tax returns that substantially undervalued the two companies and their 73,000 bitcoins and did not report that Ver owned any bitcoins personally.

The indictment further alleges that by June 2017, Ver’s two companies continued to own approximately 70,000 bitcoins. Around that time, Ver allegedly took possession of those bitcoins and in November 2017 sold tens of thousands of them on cryptocurrency exchanges for approximately $240 million in cash. Even though Ver was not then a U.S. citizen, he was still legally required to report to the IRS and pay tax on certain distributions such as dividends from MemoryDealers and Agilestar, which were U.S. corporations. Ver allegedly concealed from his accountant that he had received and sold MemoryDealers’ and Agilestar’s bitcoins that year. As a result, Ver’s 2017 individual income tax return did not report any gain or pay any tax related to the distribution of MemoryDealers’ and Agilestar’s bitcoins to him.

In total, Ver is alleged to have caused a loss to the IRS of at least $48 million.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada for the Central District of California made the announcement.

IRS Criminal Investigation's cybercrimes unit is investigating the case.

Assistant Chief Matthew J. Kluge and Trial Attorney Peter J. Anthony of the Justice Department’s Tax Division and Assistant U.S. Attorney James. C. Hughes for the Central District of California are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

https://www.justice.gov/opa/pr/early-bitcoin-investor-charged-tax-fraud


Topic will be updated with more information later, but I am interested to hear your opinion about this.

[un_rank]

The Uniited States tax laws are insane. Despite several attempts to try and wrap my head around it, I hit a brick wall every time. It seems like a design intended to indict people rather than make the process easier for them, you have to figure out what to do and when to do it, otherwise you'll face prosecution.

Let's see as more details unfold regarding this case.

- Jay -

[NotFuzzyWarm]

The Uniited States tax laws are insane. Despite several attempts to try and wrap my head around it, I hit a brick wall every time. It seems like a design intended to indict people rather than make the process easier for them, you have to figure out what to do and when to do it, otherwise you'll face prosecution....

Actually the IRS rules are pretty straight forward. I've never had any problems following them in dealing with my BTC earnings and transactions.

Then again - I'm not a mega millionaire hell bent on looking for every legal loophole and trying questionable interpretations of them to try and evade taxes.

[bitmover]

Early Bitcoin Investor Charged with Tax Fraud

Man Known as “Bitcoin Jesus” Evaded Nearly $50M in Taxes

When I bought my first bitcoin in mid-2017 it was during the Fork wars. This guy was basically living to spread fake information and make money with that fork and market manipulation.

I am impressed none of those BCH activists  had legal problems with all that drama...

50M in taxes is a lot of money... I wonder if this was just an excuse to arrest him, or if he really evaded all that.

[electronicash]

The Uniited States tax laws are insane. Despite several attempts to try and wrap my head around it, I hit a brick wall every time. It seems like a design intended to indict people rather than make the process easier for them, you have to figure out what to do and when to do it, otherwise you'll face prosecution.

Let's see as more details unfold regarding this case.

- Jay -

i thought it was just a proposal still, they must have approved the bill on Sunday night session.
last news i heard it was 25% for unrealized gains so there it goes. it's official and Ver is the first to be set as an example. just look at how much effort he made to the extent of renouncing his U.S. citizenship but seems like he will be expatriated to pay.  

not sure if he knows that he is required to report to the IRS even when he isn't a US citizen anymore. all the troubles seem nothing has changed. feel sorry for him. it's their law though.

[coolcoinz]

I never liked Roger, especially after that video where he showed us the finger, but what amazes me is that he sold so many BTC for less than $1k - that's one.

Then the part where he changed citizenship and was required to pay exit tax - like WTF? The country bullies you, you decide you don't want to live there anymore, so they want you to pay them for leaving? What kind of law is that? I'm sure many people aren't even aware of such rule.

It's also amazing that Ver hasn't been a US citizen for a decade and they come up with that right now? I feel like this isn't a coincidence and either some model citizen reminded the IRS about him, or maybe it has something to do with the recent attack on bitcoin wallets.

[Medusah]

The US authorities have detained both Samourai developers and Roger Ver within a single week.  Some might see this as mere coincidence, but I believe it sends a clear message.  The state is officially declaring a war on cryptocurrencies.  Expect further arrests in the future. 

The DoJ has kicked the hornet's nest, and the swarm is headed towards us. 

[MeGold666]

You can't have boating accidents with Bitcoin, they see everything.

The state is officially declaring a war on cryptocurrencies.  Expect further arrests in the future. 

It's war on privacy - transparent cryptocurrencies like Bitcoin give them more power.

[Amphenomenon]

Us and their laws, they literally will always find ways to take control and milk others.

 I never knew this guy but I can say he really did mess up trying to act smart against the law even when he was having these numbers of bitcoins.

Though if he was really someone who really believes in bitcoin and stand to keep his nickname “Bitcoin Jesus ” in truth then he will still be a HODLer and the quantities of bitcoin he would have accumulated or still be having now will be enough for him to pay the $50m fine without him going bankrupt.

The US government will be happy now, since they are enjoying from the fact that bitcoin is the world best store of value from thousands of dollars to now millions of dollars

[MeGold666]

One thing I've learned since I was a little kid, if Wesley Snipes didn't succeed in avoiding taxes, I certainly won't succeed either.

Better lose hand than whole arm.

[SamReomo]

Bitcoin Jesus is finally down by the US government, and who's going to be their next target? The US government is taking aggressive actions against crypto currencies investors and platforms from so many weeks and I'm very sure if they continue doing that then most of the platforms will stop providing their services to US citizens.

The policies of the US are too strong, and that guy Roger Ver has done something which was against the policies of the US government. Tax evasion of $50M is a huge amount that guy has been enjoying his life even after doing something like that. Now, he's arrested, let's see what's going to happen to him now.

[NotFuzzyWarm]

...
Then the part where he changed citizenship and was required to pay exit tax - like WTF? The country bullies you, you decide you don't want to live there anymore, so they want you to pay them for leaving? What kind of law is that? I'm sure many people aren't even aware of such rule.
...

FYI: The US 'exit tax' has been in effect since 2008 and folks in the USA with money have always been well aware of it. Ver obviously was and paid what he thought would be enough to throw the IRS off his scent. Problem is -- he apparently took it further and lied about his US-based companies BTC holdings while continuing to extract a sizeable portion of it for himself after he changed his citizenship.

[alani123]

As far as I know Ver claimed to have renounced his U.S. citizenship and was instead using a Saint Kitts passport he had acquired by just giving the island nation a lump sum of money ($600k iirc). He was very vocal against federal agents, their actions as well as the overall tactics of the U.S. government. We used to relentlessly mock him here for him liking to support Bitcoin Cash over the original bitcoin.

The U.S. is just trying to send a message that it's not to be messed with. Surely this was a long time coming. They knew his whereabouts, history and were actively tracking him. Roger just didn't see it coming. He probably by this point has the USD 50m that they're alleging he forfeited but damn, what an expensive price to pay. This is just the U.S. gov saying "go with out ways or there's no free market for you".

Well, indeed mr. Ver was an investor at several startups that may or may not make him liable for U.S. taxes. Ver also used to have a very moralistic approach at supporting bitcoin saying that bitcoin's success could end the U.S. gov's power to keep killing innocents and children across the globe. It's somewhere in between that time and today that he got caught into being a relentless capitalist himself, essentially feeding into the same system that kills the children...

But still, wow! Even for a person I used to say I didn't like I can't stand seeing him being arrested in a nation he was never obliged to pay taxes at over tax fraud allegations. A sealed indictment is such a scummy way to go. The U.S. probably spent millions on this internationally coordinated investigation.

[pixie85]

We live in a clown world where you can be a citizen of another country and the US can get you arrested and extradited there. They can also imprison you for alleged crimes committed against its monetary policy which is another joke of a law.

Think about a scenario where you live in some remote country and one day local police arrests you and says you're going to the US because you did something that's forbidden there and they want to prosecute you. You don't even speak English and don't know US laws. This is how dumb this can get.

I'm not going to pity Roger because he did some shady shit in his life with that bch - sv fork and spamming bitcoin to show BCH is cheaper to transact with but he doesn't deserve prison.

[Medusah]

You can't have boating accidents with Bitcoin, they see everything.

I agree.  Coinjoin can't do much.  We need robustness, privacy on sender and receiver by default.  Amounts hidden.  And all that in exchange for a reasonable transaction fee.  Bitcoin, despite efforts, cannot fulfill these requirements.  Samourai was the best coinjoin solution, and it's not cheap, not truly private and not even running anymore.

We need Monero now more than ever. 

[alastantiger]

How are we at war? Kindly pardon my ignorance here as a noob , I may not have fully understood. Although I have learned not to believe everything I read on the Internet but from the news publication if there's any truth to it, MemoryDealers broke the law and he is facing the consequences for it.

[wallet4bitcoin]

I read about Roger Ver's arrest, frankly, I don't see it as an ideal thing to do but then the feds are just after what they can't control (blockchain and cryptocurrency) and since they can't get a grip on what can either control it or shut it down (Satoshi Nakamoto) it is ideal they set their gaze on the next closest big thing and Roger Ver happens to fall under their radar. Its really not a good one for the crypto space.

[goldkingcoiner]

We are officially at war!
One of the Bitcointalk forum members known as MemoryDealers aka Roger Ver was allegedly arrested in Spain for tax fraud.

What war? Roger Ver is a well known scammer. I am amazed at how he managed to dodge prison so far.   But now he and CZ can spend turns dropping the soap in the prison shower.

The fact that you consider his arrest an act of war against the Bitcoin community says a lot about you.  

[bitmover]

How are we at war? Kindly pardon my ignorance here as a noob , I may not have fully understood. Although I have learned not to believe everything I read on the Internet but from the news publication if there's any truth to it, MemoryDealers broke the law and he is facing the consequences for it.

Almost like Al Capone 

That is probably the easiest way they found to arrest him

[examplens]

I would not defend Roger in any matter, but this is just another confirmation of why anonymity is important.
The US is putting serious pressure on the regulation of the Bitcoin system (I can't shake the impression that they put themselves as the main and only judges here) and we were afraid that they would ban cryptocurrencies.