Roger Ver, a leading cryptocurrency advocate and early Bitcoin investor, has urged a US court to dismiss tax evasion charges filed against him. He is most popularly known as ‘Bitcoin Jesus’ among his 745,000 followers on X (formerly Twitter). 

Ver, 45, was arrested in February while attending a crypto conference in Barcelona. He is facing allegations of evading over $48 million in taxes and filing a false tax return.

Bitcoin Jesus Claims His Arrest Was Politically Driven

The charges are based on the sale of $240 million worth of cryptocurrencies and an “exit tax” linked to Ver’s renunciation of US citizenship in 2014. Prosecutors are seeking his extradition from Spain, where he awaits a court decision.

According to Bloomberg reports, Ver’s legal team has dismissed the indictment as politically motivated. They claim it represents the Biden administration’s heavy-handed approach to cryptocurrency enforcement. 

His lawyers argue the charges are part of a broader effort to regulate the sector through enforcement rather than clear policy measures.

Meanwhile, the case has drawn widespread attention in the cryptocurrency industry. Critics are accusing the US government of targeting high-profile crypto figures to set an example. 

“His crime? He didn’t commit one, but that doesn’t matter in the age of American Lawfare. What Roger did do was promote a revolutionary decentralizing technology that radically empowers citizens,” popular author Bret Weinstein wrote on X (Formerly Twitter)

Ver has been a vocal critic of US crypto regulation. He has long advocated for decentralized financial systems and the adoption of Bitcoin as a global currency. 

However, the government has successfully prosecuted several high-profile crypto figures over the past year. Earlier today, former Celsius CEO Alex Mashinsky pled guilty to multiple fraud charges. 

The government has also successfully prosecuted all major affiliates of Sam Bankman-Fried linked to the FTX collapse. 

A Legacy in Bitcoin

Nicknamed “Bitcoin Jesus,” Ver was among the first to promote Bitcoin when its value was less than $1. He would often give away BTC to followers to encourage adoption. He has also invested in leading crypto companies such as Ripple Labs, BitPay, and Kraken.

Born in the US, Ver moved to Japan in 2006 and became a citizen of Saint Kitts and Nevis in 2014 after renouncing his American citizenship. 

His arrest by Spanish authorities earlier this year has reignited debates on US cryptocurrency regulations and the treatment of industry pioneers. However, this is not his first legal battle. Ver has previously faced multiple lawsuits from crypto companies, including Genesis and ConFLEX. 

Crypto investment inflows experienced a sharp contrast last week, dropping to $270 million, signaling a slowdown after consecutive weeks of strong activity.

Year-to-date inflows have reached a record $37.3 billion, reflecting the continued growth of institutional interest in cryptocurrencies despite market volatility.

Crypto Inflows Drop Amid Profit Booking

Bitcoin faced significant outflows of $457 million last week, marking the first notable retreat since early September. It comes after a series of positive flows into digital asset investment products as BTC reached new highs. Specifically, crypto inflows reached $3.12 billion the prior week.

The impact of macroeconomic trends also played a role. Two weeks ago, inflows hit $2.2 billion as optimism surrounding a Republican sweep in US elections and a softer stance from the Federal Reserve buoyed investor sentiment.

However, momentum appears to be fading. Following the initial post-election rally, inflows have moderated. Last week’s figures also reflect a significant pullback compared to the $1.98 billion seen immediately after the elections. CoinShares’ James Butterfill attributes the selloff to profit-taking after Bitcoin approached the $100,000 psychological level.

“We believe is profit taking following bitcoin testing the very psychological level of $100,000,” Butterfill wrote.

Meanwhile, experts have divided Bitcoin’s outlook. Pessimistic analysts, including prominent figures like former Wall Street quant Tone Vays, forecast further downside.

Vays disclosed his decision to exit all long positions at $97,800, reflecting caution among seasoned traders. The analyst expressed skepticism about Bitcoin sustaining its $100,000 breakthrough this year.

“Still think sustaining a $100,000 break this year is unlikely.  Will be more than happy to be wrong OR Buy the Dip sub for $90,000! Might even consider a short,” he expressed.

Conversely, more optimistic views persist. Fundstrat’s Tom Lee remains bullish, projecting Bitcoin to reach $250,000 by the end of 2025. However, Lee’s team acknowledges potential short-term setbacks, with some expecting a dip to $60,000 before resuming its upward trajectory.

Robert Kiyosaki, the author of Rich Dad Poor Dad, echoed this sentiment but highlighted that any dip is a buying opportunity for long-term accumulation.

“Bitcoin is stalled short of $100,000. That means BTC may crash to $60,000. If and when that happens, I will not sell,” Kiyosaki stated.

While Bitcoin faced outflows, Ethereum recorded a massive $634 million in inflows, signaling renewed investor confidence in the asset. Ethereum’s YTD inflows have reached $2.2 billion, supported by a growing shift in sentiment as traders pivot to altcoins amid Bitcoin’s short-term uncertainty.

The crypto exchange-traded products (ETPs) market saw a drop in trading volumes, declining to $22 billion last week from $34 billion the week before.

Even with the introduction of options on US ETFs (exchange-traded funds), their effect on overall market volumes has been limited. This development raises concerns about the level of sustained institutional interest in these financial instruments.

An analyst broke down the strategy behind the aggressive Bitcoin acquisition being done by MicroStrategy which is gaining attention because of the rising price of the alpha crypto.

Anthony Pompliano, Founder & CEO of Professional Capital Management, understood the mathematical reason behind the company’s investment move but also warned that any investment is exposed to potential risks.

MicroStrategy’s Bitcoin Acquisition

Pompliano said that MicroStrategy is making a bold move to buy more Bitcoin and build up its crypto reserve by using convertible debt to finance the cryptocurrency’s acquisition.

The investment firm offers its shares at a higher price than the current price per share to generate funds for its Bitcoin acquisition.

Pompliano explained that MicroStrategy is selling future equity at a 55% premium to help the company buy more Bitcoin, saying that is a financially attractive move, saying, “This strategy makes sense from a financial perspective.”

Image: Crypto Economy

The analyst said that it is a beneficial strategy for MicroStrategy because it allows the investment firm to gain significant capital which the company is now using to buy a lot of the leading crypto, saying that this approach makes sense mathematically.

The Bitcoin Investment Plan

In October this year, MicroStrategy announced that it would be conducting a Bitcoin shopping spree by raising $42 billion in new capital in the next three years to finance its goal of buying more BTC.

Some analysts consider this Bitcoin investment strategy as a bold move being eyed by the investment firm.

Bitcoin market cap currently at $1.92 trillion. Chart: TradingView.com

According to the company’s executive, the objective of MicroStrategy’s capital-raising approach is to get $21 billion in fresh capital from equity offerings and generate another $21 billion from fixed-income securities between 2025 and 2027.

As of September 2024, MicroStrategy is already the largest Bitcoin holders among the publicly traded companies worldwide. Buying more of the crypto would further boost its position at the top spot among public companies.

Image: Theya Blog

Associated Risks

Pompliano understood the appeal of the Bitcoin proposition, saying that the move could be lucrative for the investment company.

However, the analyst pointed out that investors must not overlook the risks associated with such investments, saying anyone who wants to embrace MicroStrategy’s approach should understand the risks before dipping their feet into it.

“Now, the counterweight to that is there’s a hell of a lot of people I see saying nothing can go wrong. I’m not in that camp,” he said.

Pompliano explained that the investment firm’s strategy is not foolproof, saying that some people assumed that nothing could derail the investment plan.

“I couldn’t sit here and tell you what can go wrong, but what I can tell you is that an alarm goes off in my head when I start seeing everyone saying nothing can go wrong,” he expressed.

He pointed out there are volatility risks when people invest in Bitcoin, adding that the uncertain regulatory environment could amplify the risks associated with the aggressive purchasing of BTC.

Featured image from Canva, chart from TradingView