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Bitcoin Jesus Roger Ver Fights US Indictment Alleging Tax Evasion: Details

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Roger Ver, recognized in the crypto community as “Bitcoin Jesus,” is contesting an eight-count indictment brought by the U.S. Attorney for the Central District of California. Ver, known for his early investments in Bitcoin and advocacy for digital assets, is accused of failing to report $50 million in taxes on Bitcoin transactions valued at $240 million in 2017. 

Additional charges allege that Ver underrepresented the value of his businesses during his 2014 renunciation of U.S. citizenship to avoid higher exit taxes.

Roger Ver Fights Tax Evasion Charges

According to FOX Business, Roger Ver is challenging allegations that he evaded paying $50 million in taxes on substantial Bitcoin sales in 2017. Prosecutors claim Ver also underreported the value of two companies he owned, MemoryDealers US and Agilestar, when he expatriated in 2014. 

Allegedly, the underreporting allowed him to avoid a higher exit tax, a levy imposed on unrealized capital gains for individuals relinquishing U.S. citizenship.

Ver’s legal team, comprising attorneys from prominent law firms Steptoe LLP and Kimura London & White, filed a motion to dismiss the indictment. The motion argues that the Justice Department engaged in unconstitutional government overreach and selectively withheld key evidence. It also claims the actions violated Ver’s right to due process. 

The filing includes correspondence between Ver and his attorneys, indicating his efforts to ensure compliance with crypto tax regulations at the time.

Allegations of Government Overreach and Communication Misuse

Roger Ver’s legal representatives contend that prosecutors improperly obtained privileged attorney-client communications and used them to build their case. These communications include detailed emails in which Ver sought professional advice to meet his tax obligations, even under ambiguous guidelines.

The legal team also claims that the indictment reflects selective enforcement against Roger Ver, a vocal critic of U.S. cryptocurrency regulations. The motion claims crypto tax rules during Ver’s expatriation were unclear, making criminal charges unwarranted.

Furthermore, the attorneys assert that the government’s actions violate core constitutional protections for individuals seeking to renounce citizenship.

More so, Ver’s defense argue that crypto tax regulations were insufficiently defined at the time of his alleged offenses. The IRS began issuing guidance on virtual assets as property in late 2014, after Ver had renounced his U.S. citizenship. 

His legal team maintains that Roger Ver relied on attorneys and accountants to comply with all applicable laws. In an email correspondence dated April 2013 and included in the filing, Ver expressed to his lawyer, 

“I want to make sure that my exit tax payments are as clean as possible, with no room to have trouble from the IRS in the future.”

Moreover, emails reveal that Ver’s advisors recommended obtaining third-party appraisals to address the difficulty of valuing Bitcoin accurately, given the low market liquidity in 2014. The defense further argues that any discrepancies were unintentional and do not warrant criminal prosecution.

The motion to dismiss is being reviewed by the U.S. District Court for the Central District of California. Ver’s attorneys express optimism that the incoming Trump administration, may influence the case’s outcome.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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John Deaton Lays Out 5 To-Do List

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John Deaton, a prominent crypto lawyer, has outlined a five-point plan for regulation by lawmakers in the United States. In his latest post on X, he calls for urgent action to establish clear rules that will support innovation, protect users, and bring stability to the crypto sector.

John Deaton on the Five Crypto Regulation Priorities

Deaton’s first recommendation is to pass a law on stablecoins. He believes this can increase demand for U.S. Treasuries and reduce the cost and delay in sending money across borders. This, he noted, will help the United States play a stronger role in global trade.

John Deaton wants the US. Congress should clearly define which tokens are securities and which are commodities. This will help decide whether the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) should regulate them. Without such clarity, regulators may continue to clash over control, and projects may face confusion.

He also raised the need for crypto exchange regulation. Deaton wants strict rules to ensure customer funds are not mixed with company funds. He suggests that exchanges hold full reserves visible on the blockchain. This way, they can avoid high-risk activities like offering large amounts for lending or using customer funds elsewhere.

In addition, Deaton suggests easing the tax burden. He proposes removing the capital gains tax on small crypto payments and allowing people to pay federal taxes in cryptocurrency without facing more taxes.

Lastly, he urges Congress to revise or remove the Accredited Investor Rule. John Deaton believes the rule locks out too many people from early investment opportunities. He warns that lawmakers must act before the 2026 midterm elections to avoid delays caused by political changes.

Stablecoin Laws May Arrive Very Soon

It is important to add that Deaton’s views support ongoing developments in Congress. A bill known as the GENIUS Act is already being discussed. 

It suggests that the Federal Reserve would manage large banks issuing stablecoins, while state bodies would handle smaller groups. 

According to recent reports, the global market for stablecoins now exceeds $234 billion, raising hopes that new U.S. laws will soon follow. 

As mentioned earlier by President Donald Trump, lawmakers are likely to fasttrack the stablecoin regulation. The current timeline is slated for Q2 this year.

SEC’s Shifting Position on Oversight

The SEC, which once took a hard line on crypto regulation, is now adjusting its stance

CoinGape noted earlier that the era of counterproductive oversight may be ending, as U.S. SEC and CFTC leaders have agreed to work together moving forward.

Historically, the SEC treated most tokens as securities, focusing on enforcement, while the CFTC took a softer approach to the markets. Recent laws like FIT21 aim to give the CFTC more control over decentralized assets.

With both regulatory oversight looking to create more cohesive plans to work, and the new leadership of Paul Atkins, the industry hopes to overcome challenges, reduce uncertainty, and foster greater clarity in crypto regulation.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

Follow him on X, Linkedin

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC and Binance Agree To Pause Legal Proceedings for 60 More Days

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The U.S. Securities and Exchange Commission (SEC) and Binance have requested a federal judge to extend the pause in their ongoing legal case for another 60 days.

This decision follows what both parties described as “productive discussions” and will provide more time for further deliberations.

US SEC and Binance Agree To Pause Legal Proceedings

The SEC initially sued Binance in 2023, accusing the exchange and its executives, including former CEO Changpeng Zhao, of violating federal securities laws, who is now the Strategic Advisor to Pakistan’s Crypto Council. The charges centred on Binance’s operation as an unlicensed clearing agency, broker, and exchange.

Additional allegations included the commingling of funds and manipulation of trading volume on Binance.US, its U.S. affiliate. These serious claims led to the ongoing litigation, which was paused multiple times to allow the parties to negotiate and clarify their positions.

Earlier this year, the SEC requested a 60-day pause in the case to allow for discussions around a new crypto task force to clarify how securities law might apply to digital assets. That pause was set to expire on April 14, 2025, but the SEC and Binance have now mutually agreed to extend it for an additional two months.

Reasons for the Continued Binance SEC Pause

The SEC, in its filing, explained that the discussions between both parties had focused on how the work of the newly formed crypto task force could impact the case. The task force, created to address regulatory issues in the cryptocurrency sector, may provide clearer guidance on how U.S. securities law applies to digital assets.

The SEC also pointed out that additional time was needed for authorization from the Commission before making any decisions or revisions in the scope of the case. Binance, for its part, agreed that an extension of the pause was in everyone’s best interest and would help to facilitate the ongoing discussions between the two sides.

“The continued pause is appropriate and in the interest of judicial economy,” the filing stated. Both the SEC and Binance have indicated that they aim to resolve the matter efficiently, without unnecessary delays or complications.

Crypto Task Force’s Role in the Case

The SEC’s newly established crypto task force may shape how digital asset transactions are treated under U.S. law. In a recent statement, Acting SEC Chair Mark Uyeda emphasized the importance of clear regulations for the cryptocurrency market and noted that the task force’s role is to create long-term solutions for regulating crypto trading.

Uyeda also suggested that a “time-limited, conditional exemptive relief framework” might be appropriate to allow innovation in blockchain technology while maintaining regulatory oversight. He encouraged market participants to contribute their views on where such exemptions might be necessary to foster industry growth.

The crypto task force’s efforts may influence how the SEC handles its case against Binance and its broader approach to regulating the digital asset space. The task force aims to ensure that U.S. law can adapt to the rapidly evolving technology behind cryptocurrencies while also protecting investors and ensuring market integrity.

Next Steps in the Legal Proceedings

With the case now paused for another 60 days, the SEC and Binance will continue their discussions and await further guidance from the crypto task force. The next update on the case’s status will come after the 60-day period.

As the pause continues, like the Ripple vs SEC case, stakeholders in the cryptocurrency industry will closely monitor the outcome of the discussions, as the case could set important precedents for future regulatory actions.

The SEC, as a result, has clarified that it is focused on ensuring compliance with securities laws, while Binance has stated its commitment to working within the framework of U.S. regulations.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US Senators Reintroduce PROOF Act To Set Reserve Standards for Crypto Firms

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As crypto regulation gains ground in the US under pro-crypto President Donald Trump, US Senators are taking further steps to strengthen oversight of digital asset firms. Senators Thom Tillis and John Hickenlooper reintroduced the Proving Reserves of Other Funds (PROOF) Act, which aims to create new standards for transparency and fund management in the cryptocurrency sector.

US Senators Reintroduce PROOF Act Bill

According to Eleanor Terrett, US Senators Tillis and Hickenlooper have renewed their push for the PROOF Act, which was first introduced in 2023. The bill responds to concerns raised by the collapse of FTX, where customer funds were reportedly mixed with the company’s own capital and redirected to affiliated firms.

The PROOF Act would prohibit the co-mingling of customer assets by digital asset custodians and exchanges. It sets requirements for monthly third-party reserve checks, which would ensure that firms hold enough reserves to back customer holdings.

Independent auditing firms would perform these checks, sending the results to the U.S. Department of the Treasury.

Mandatory Proof of Reserves Checks

Under the US Senator’s proposed law, all firms offering digital asset custody or exchange services must undergo monthly Proof of Reserves (PoR) inspections. These checks would verify that firms hold the assets they claim to possess on behalf of their clients.

PoR uses cryptographic tools like Merkle trees and zero-knowledge proofs to verify balances without revealing user data. To ensure transparency, the inspection reports would be made public through the Treasury Department. If a company fails to comply, it will face civil fines that increase with repeated violations.

Although some firms have previously voluntarily shared proof of reserves information, these practices have been inconsistent and often lacked third-party verification. The PROOF Act would create a standardized process across the industry.

Preventing Fund Mismanagement in the Crypto Industry Through The PROOF Act

The US Senators’ renewed effort to pass the PROOF Act follows the financial failure of several crypto companies, most notably FTX. Reports showed that FTX moved customer deposits to its sister firm, Alameda Research, without proper disclosure or reserves, contributing to a major loss of trust in the sector.

Lawmakers aim to reduce the risk of mismanaged or missing funds by introducing strict reserve reporting requirements. The bill, as a result, intends to give customers more confidence that their digital assets are safe and properly accounted for by crypto firms.

The legislation also encourages more responsible behaviour from digital asset institutions by requiring them to follow clearly defined standards. These standards subsequently support regulatory oversight and prevent future financial harm to customers.

SEC Leadership and Regulatory Developments

The reintroduction of the PROOF Act follows Paul Atkins’s appointment as the new Chair of the Securities and Exchange Commission (SEC) in the United States. The Senate endorsed Atkins with a 52 to 44 majority in acknowledging his position on precise crypto regulations.

As a result, the Division of Corporation Finance of the SEC published guidance for crypto issuers as a follow-up to Atkins’ confirmation. The guidance also involves disclosure concerning business models and financial statements and risks associated with digital assets that fall under the definition of securities.

Subsequently, Senator Cynthia Lummis, a pro-Bitcoin legislator, has corroborated the development while acknowledging optimism about the future under Atkins. She stated that from her conversation with Atkins, she became confident in his handling of digital asset regulation.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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