Fintech
Billionaire Bitcoin Investor Michael Saylor Settles $40 Million Tax Fraud Lawsuit
Billionaire bitcoin investor Michael Saylor and his company, MicroStrategy, have settled a tax fraud lawsuit brought by the Washington, D.C. attorney general. The lawsuit alleged that Saylor evaded more than $25 million in District of Columbia income taxes by falsely claiming residency in lower-tax states such as Florida and Virginia.
Now, after months of legal proceedings, Saylor and MicroStrategy have succeeded agreed to pay $40 million to solve the case, marking a significant development in the ongoing saga.
MicroStrategy agreed to pay a $40 million fine
The cause, filed by ex D.C. Attorney General Karl Racine in August 2022, alleged that Saylor avoided income taxes in the District for more than a decade by falsely claiming residency in lower-tax states such as Florida and Virginia.
The attorney general’s office also accused MicroStrategy of conspiring to facilitate Saylor’s tax evasion. Now, with the $40 million settlement, both Saylor and MicroStrategy aim to put the legal dispute to rest.
Additionally, the lawsuit revealed that Saylor’s actual residence was a luxury penthouse in Washington, overlooking the Georgetown waterfront, where he reportedly kept his yachts on the Potomac River. With a net worth of about $4.6 billion, according to Forbes, Saylor also held a significant stake in MicroStrategy, owning 2.4 million shares as of February.
Saylor’s role and resignation
As a result of the lawsuit, Saylor stepped down as CEO of MicroStrategy in August 2022, although he retained his roles as executive chairman and chairman of the board.
Despite legal challenges, Saylor continued to do so promote MicroStrategy as a Bitcoin-friendly company, regularly announcing new Bitcoin purchases on its social media platforms.
MicroStrategy Bitcoin Participation
Saylor’s involvement with Bitcoin was pivotal focus of his tenure at MicroStrategy. In March 2024, the company made a substantial purchase of Bitcoin, acquiring 12,000 BTC through an $800 million convertible note offering.
Currently, MicroStrategy holds up 214,400 bitcoins, purchased at an average price of $35,000 per BTC, with a total investment of approximately $7.5 billion.
Meanwhile, the ongoing resolution of the tax fraud lawsuit against Michael Saylor and MicroStrategy marks a significant milestone in the ongoing legal saga. Throughout the legal process, Saylor remained a key figure in the cryptocurrency world, supporting Bitcoin.