U.S. authorities claim that Ver failed to accurately report the value of his Bitcoin holdings when paying his "exit tax" before renouncing his U.S. citizenship in 2014. The government alleges that he owes approximately $48 million in back taxes related to his cryptocurrency assets and business interests in the United States. If extradited from Spain, where he currently resides, he could face a severe prison sentence.
Buterin has expressed his outrage at the severity of the potential punishment, stating that sentencing someone to life in prison for a non-violent tax offense is excessive. He compared Ver’s case to that of Ross Ulbricht, the founder of Silk Road, who received a life sentence without parole. Buterin argued that financial and cyber-related crimes in the U.S. often receive harsher penalties than violent offenses, which he believes is unjust. Buterin posted on X:
Going to prison for the rest of your life over non-violent tax offenses is absurd. The case against Roger seems very politically motivated; like with @RealRossU, there have been plenty of people and corporations who have been accused of far worse and yet faced sentences far… https://t.co/7G3zDkn2F2
— vitalik.eth (@VitalikButerin) March 1, 2025
Another key issue Buterin highlighted is the U.S. tax system’s practice of taxing individuals based on their citizenship rather than their residency. He described this policy as “extreme” and pointed out that most other countries do not impose such stringent exit tax requirements on citizens who renounce their nationality.
Many figures in the cryptocurrency space have come to Ver’s defense. Ross Ulbricht, who was recently granted clemency by President Donald Trump, voiced his support, arguing that tax disputes should be settled financially rather than with harsh prison sentences. Kraken founder Jesse Powell also criticized the case, stating that authorities are targeting Ver because they “just don’t like him.”
Not everyone in the tech and crypto industry agrees with Buterin. Elon Musk has spoken against the idea of granting Ver a pardon, arguing that since Ver voluntarily renounced his U.S. citizenship, he should not expect legal protection or special treatment from the U.S. government.
Ver’s legal team is fighting the charges, arguing that the exit tax law applied in his case is vague and unconstitutional. His lawyers have filed a motion to dismiss the charges, suggesting that the prosecution is politically motivated due to Ver’s history of advocating for cryptocurrencies and financial privacy.
This case has sparked renewed debate over the U.S. government’s handling of cryptocurrency taxation and legal enforcement. Many in the crypto community believe that mistakes in tax filings should be addressed through financial penalties rather than severe criminal prosecutions.
As Roger Ver battles extradition from Spain, the outcome of his case could have significant consequences for the future of cryptocurrency regulation and the treatment of digital asset investors worldwide.
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