The crypto industry was rocked on Tuesday after news broke that one of Bitcoin’s earliest investors had been indicted. According to reportsThe U.S. Department of Justice (DOJ) has filed several charges against Roger Ver, a controversial figure in the space known as “Bitcoin Jesus.”
Experts and community figures have expressed their feelings regarding Ver’s arrest, with some believing that the US administration is embarking on a “crypto witch hunt.”
Was the indictment of Roger Ver celebrated?
On April 30, Roger Ver was arrested by Spanish authorities for tax evasion, mail fraud and false tax declarations. THE charge came on the same day as former Binance CEO Changpeng “CZ” Zhao’s four-month sentence.
Prosecutors allege that Ver, who renounced his U.S. citizenship in 2014, failed to report gains from Bitcoin sales held by his U.S. companies and therefore failed to pay required taxes.
As a result, the “Bitcoin Jesus” is now accused of causing a $48 million loss to the IRS, and the United States is seeking his extradition from Spain.
Following the news, several crypto experts and community members commented on the accusations, with some considering them a “good” thing. Bitcoin educator and investor Dan Held was among those who “celebrated” the detention.
Breaking: Roger Ver charged with mail fraud, tax evasion and filing false tax returns, wanted for extradition to the United States: US Department of Justice
GOOD. It has been a net negative for Bitcoin.
– Dan Held (@danheld) April 30, 2024
In an X article, Held said that Roger Ver had “been negative on Bitcoin.” At investor, Ver “misaligned expectations around Bitcoin so much that it led to a civil war. He deserves everything he’s about to get.
Some members of the crypto community partly agreed with Held’s sentiment. A user considered Worm responsible for attempting to destroy Bitcoin during the “block size war.”
DOJ faces backlash for ‘excessive’ and unclear crypto landscape
Overall, sentiment leans against prosecuting Roger Ver. For many, the DOJ’s actions are part of the US government’s efforts to target the crypto industry. Jane Adams, candidate for the United States House of Representatives in 2024 called the indictment “is a blatant attack on dissent,” adding that the U.S. administration’s “pursuit is fueled by vindictiveness, not justice.”
Likewise, Layer Two Labs founder and CEO Paul Sztorc also Express his concern: “Not exactly a government via the consent of the governed…” he declared in an X post.
According to investor and crypto expert Kim Dotcom, the accusations against Ver “have nothing to do with tax evasion.” Instead, the crypto veteran sees the US government as engaged in a witch hunt, “a malicious attempt to vilify Roger and punish him for exposing and opposing the crimes of the US empire.” .
Roger Ver, an early investor in Bitcoin, has been arrested in Spain for alleged tax fraud and the US government is seeking his extradition. The US DOJ claims Roger understated the value of his Bitcoin holdings when he renounced his US citizenship in “2014”.
At this moment…
-Kim Dotcom (@KimDotcom) May 1, 2024
The investor argues that at the time of the Bitcoin sales used for the indictment, the crypto industry was “the Wild West of investing.” As a result, there was no regulation or clear guidance on the legal status of cryptocurrency:
How do you assess the value of such an illiquid asset in 2014? To claim now, a decade later, that Roger owes $50 million in taxes to the US government is ridiculous (…) It is also a desperate attempt to attach a value to something that was trading in a fragile, volatile market and not regulated in 2014.
The crypto community has widely discussed the United States’ unclear and inconsistent regulatory framework for cryptocurrencies. Consensys’ recent filing against the Securities and Exchange Commission (SEC) Underlines the contradictory directions of the country’s regulators.
These contradictions have led U.S. Congressmen like Patrick McHenry to view the SEC’s efforts to regulate “by enforcement” as being motivated by an “arbitrary and capricious nature.” Ultimately, he calls for “a clear regulatory framework and strong consumer protections for digital asset markets.”
Total crypto market cap is at $2.09 trillion in the three-day chart. Source: TOTAL on TradingView
Featured image from Unsplash.com, chart from TradingView.com
