The crypto pioneer agreed to pay nearly $50 million in taxes and penalties to settle allegations that he failed to report massive Bitcoin profits after cutting ties with the United States a decade ago.

The Justice Department confirmed that prosecutors will drop the indictment under a deferred-prosecution deal, meaning Ver avoids a conviction if he meets the terms of the agreement over the next three years. The arrangement concludes one of the most publicized tax disputes in the crypto world – a case that blurred the lines between digital freedom, offshore citizenship, and tax accountability.

Ver, who gave up his American citizenship in 2014 and became a citizen of St. Kitts and Nevis, was accused of underreporting gains from more than 130,000 Bitcoin he owned at the time – worth about $74 million back then. The IRS argued that he owed taxes on those assets when he expatriated, but his filings omitted most of the holdings, leading to a claim that he evaded around $48 million.

After his 2024 indictment, Ver was arrested in Spain and briefly detained on the island of Mallorca. He later took to social media, appealing directly to President Donald Trump for help and denouncing what he called politically motivated “lawfare.” His plea sparked controversy, drawing a blunt response from Elon Musk, who reminded followers that Ver had “renounced his citizenship” and wasn’t entitled to a U.S. pardon.

Instead of a pardon, Ver’s legal team secured a deal that requires him to pay what the IRS says he owed and refrain from seeking tax refunds for three years. If he violates the terms, the U.S. can reinstate the charges. Justice Department officials said the settlement should serve as a warning to others that “crypto or not, tax obligations still apply.”

For Ver, once hailed as “Bitcoin Jesus” for his early evangelism, the resolution closes a dramatic chapter in his post-American life. Once a vocal libertarian advocating for financial independence through crypto, he now finds himself an unlikely symbol of how even Bitcoin’s most famous believers can’t fully escape the reach of U.S. tax law.