Roger Ver, facing 109-year sentence over 'exit tax' scandal, sues Spain to block US extradition

Early Bitcoin advocate Roger Ver is suing Spain in an attempt to block his extradition to the United States, where he faces tax evasion charges. According to a lawsuit filed last month with the European Court of Human Rights, Ver claims Spain violated his rights when it agreed to extradite him. Ver, a former resident of Santa Clara, California, was charged by the Department of Justice in 2024 with several counts of mail fraud, tax evasion, and filing false tax returns. Ver was arrested in April 2024 in Spain and released on bail while awaiting potential extradition to stand trial in the United States. U.S. authorities allege that Ver failed to accurately report his capital gains on his bitcoin holdings when renouncing his U.S. citizenship in a process known as expatriation. The DOJ claims Ver owed a substantial “exit tax” in 2014 when he obtained citizenship in St. Kitts and Nevis. In addition, in 2017, Ver allegedly hid approximately $240 million worth of additional crypto asset sales executed by his two companies, MemoryDealers and Agilestar, which were incorporated in the U.S. “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,” the Justice Department explained. Ver owes an estimated $48 million to the IRS and faces a possible sentence of 109 years in prison. In December, Ver filed a motion to dismiss all eight counts. He argued the exit tax is unconstitutional and that the government’s case was based on “impermissibly vague foundations.” Ver, known for his support of the contentious Bitcoin Cash fork, has petitioned President Donald Trump for a pardon. While the so-called “Free Roger” movement has gained support among some crypto advocates, including Silk Road founder Ross Ulbricht, others arguethat heforeclosed on that option when he forfeitedhis U.S. citizenship. [Bloomberg Law]