The U.S. Department of Justice (DOJ) has indicted Roger Ver for tax fraud relating to unreported capital gains from bitcoin sales in 2017. Ver is accused of not filing tax returns or paying the required "exit tax" on the capital gains earned from these sales.

According to a DOJ press release, Ver was arrested in Spain during the weekend, and the United States is seeking his extradition. Ver allegedly sold "tens of thousands" of bitcoin in November 2017, generating approximately $240 million in revenue. Despite renouncing his U.S. citizenship and establishing businesses in St. Kitts and Nevis, he was still legally bound to report earnings to the IRS from certain distributions, such as dividends from U.S. corporations MemoryDealers and Agilestar.

The DOJ press release quoted, "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." Furthermore, the department alleges that Ver concealed from his accountant the fact that he had received and sold bitcoins from MemoryDealers and Agilestar, leading to an inaccurate 2017 individual income tax return that did not report any gains or taxes related to these transactions.

Previously, Ver has faced legal issues, having pleaded guilty and served time for selling explosives on eBay. His most recent public statement, a cryptic message posted on social media, read: "Don't expect bad people to do good things."

The outcome of this case may set a precedent for how the U.S. government handles similar cases in the future and could influence the reporting and taxation practices of individuals involved in Bitcoin trading and investment.

DOJ Press Release

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