The US Department of Justice (DOJ) simultaneously moved to dismiss the indictment without prejudice, leaving Ver in a three-year limbo. He must comply with the deal’s terms, and prosecutors won’t re-indict. Yet, a breach will allow them to do so.
The case began with Ver’s 2014 expatriation. Prosecutors alleged he and two US companies he controlled held roughly 130,000 BTC at the time he renounced citizenship, holdings he allegedly understated on exit-tax forms.
In 2017, Ver took possession of about 70,000 company Bitcoins and sold tens of thousands for roughly $240 million without reporting the taxable distribution.
The government calculated the tax loss at a minimum of $48 million. Spanish authorities arrested Ver in 2024 as the US sought extradition, and he fought the charges until the recent settlement closed the criminal case.
Ver’s deal doesn’t rewrite tax law, but it demonstrates how firmly the existing rules still grip offshore assets.
Internal Revenue Code §877A imposes a mark-to-market exit tax on “covered expatriates,” which includes US citizens who renounce citizenship and meet income, net-worth, or compliance thresholds.
The 2025 Form 8854 instructions set the exclusion at $890,000, and failures to report carry steep penalties. Ver’s settlement precisely follows that framework. He admitted willfully omitting Bitcoin from his expatriation filings, paid what he owed, and avoided trial by meeting the government’s demands.
The agreement’s three-year tolling provision means Ver remains exposed until September 2028. Any breach during that window reopens the door to prosecution.
Court filings show Ver must also refrain from publicly opposing the admissions his lawyers made on his behalf, a constraint Malakouti-Fitzgerald flagged as risky for a figure who has spent years as a vocal Bitcoin evangelist.
The settlement’s most revealing clause may be paragraph eight’s catchall, which states that Ver cannot “violate any law” during the tolling period.
Paired with the ban on contradicting his admissions, even through agents or supporters, the terms box Ver into silence and compliance. If someone he once funded speaks out or if Ver slips in an interview, the government retains leverage to revive charges.
Malakouti-Fitzgerald concluded that Ver should “live like a monk” for three years.
Ver’s arrest in Spain stresses the far-reaching nature of US tax enforcement. Living offshore offers no sanctuary when criminal exposure stems from pre-expatriation conduct.
Extradition treaties and international cooperation turn foreign residency into a holding pattern rather than a shield. For US taxpayers still holding undeclared crypto abroad, the information-reporting net continues to tighten.
FATCA’s Form 8938 and the Foreign Bank Account Report (FBAR) already capture foreign financial assets. FinCEN has stated that it intends to amend FBAR rules to include virtual currency accounts, although this change has not yet taken effect.
Meanwhile, Treasury and the IRS finalized broker-reporting rules requiring digital asset platforms to send Form 1099-DA for sales starting Jan. 1, with broader basis reporting to follow.
The opacity that once allowed offshore crypto users to move undetected is evaporating as enforcement shifts from policy rhetoric to transactional details.
IRS Criminal Investigation has made digital assets a priority, deploying blockchain analytics to trace flows and recover taxes.
A 2024 Treasury Inspector General for Tax Administration review detailed those efforts and the push to refine them further.
Ver’s outcome aligns with the trajectory of recovering unpaid taxes, deterring noncompliance through high-profile settlements, and pursuing criminal charges when voluntary disclosure fails.
Ver’s deal clarifies that renouncing citizenship, parking assets in foreign entities, or relying on offshore residence to evade US tax obligations tied to crypto won’t work.
Although the settlement doesn’t create new law, it narrows the perceived escape routes by showing the government’s willingness to arrest, extradite, and prosecute.
For individuals caught in similar positions, the IRS Streamlined Filing Compliance Procedures and the Voluntary Disclosure Practice remain formal on-ramps to resolve undeclared assets before enforcement action begins.
Ver’s case provides a cautionary tale that addresses liability while the choice is still with the investor, or face the government’s terms when it comes to an indictment.
Malakouti-Fitzgerald also raised a question that extends beyond US jurisdiction. Ver’s admission of willful failure to report may affect his St. Kitts citizenship by investment and future mobility applications, as some countries treat admission of a crime, even without conviction, as a disqualifying factor.
Ver renounced US citizenship to escape its tax reach, but the settlement’s admissions may now complicate his access to other jurisdictions.
The deferred-prosecution agreement was fully executed on Sept. 23, yet the parties filed a joint motion to continue the case nine days later, citing the need to discuss Ver’s motion to dismiss and “potential further motions.”
Only on Oct. 14 did the DOJ file its motion to dismiss without prejudice, formalizing the deal the parties had already signed weeks earlier.
Ver’s settlement will likely not be the last. As broker reporting expands, blockchain analytics mature, and cross-border cooperation deepens, the window for offshore holdouts is closing.
