Crypto Analyzer

Michael Saylor Settles $40M Tax Fraud Case with Washington DC

Billionaire bitcoin advocate and MicroStrategy co-founder Michael Saylor has agreed to settle a lawsuit with the Washington DC district attorney’s office by paying $40 million. The case alleged that Saylor engaged in a significant tax fraud scheme by providing false information to authorities about his place of residence over several years.

According to prosecutors, Saylor evaded over $25 million in local income taxes from 2005 to 2022 by inaccurately claiming to reside in Florida or Virginia while actually living in a luxury waterfront penthouse in Georgetown, Washington DC. The lawsuit also mentioned that Saylor was allegedly docking multiple yachts on the Potomac riverfront, further implicating his involvement in tax fraud.

Despite settling the case for $40 million, Saylor did not admit to any wrongdoing, and neither he nor MicroStrategy acknowledged any violations of the law in the settlement. MicroStrategy’s shares rose by 8% to around $1,625 per share following the settlement announcement.

After stepping down as MicroStrategy’s CEO in 2022, Saylor affirmed that he continues to regard Florida as his home and denied the allegations of being a resident of Washington DC. He stated that he agreed to settle the matter to avoid further legal complications for himself, his family, and friends.

The settlement required Saylor to pay the entire $40 million amount to the district, with no obligation for MicroStrategy to make any contributions towards the payment. The DC attorney general, Brian Schwalb, termed the settlement as the “largest income tax fraud recovery in DC history” and emphasized that no individual, regardless of wealth or influence, is above the law.

Michael Saylor, known for his strong support of bitcoin, has experienced a growth in his personal wealth amid the recent surge in bitcoin prices. As of Monday, his estimated net worth stands at $4.8 billion, according to Forbes.

The resolution of this tax fraud case highlights the scrutiny faced by high-profile individuals in matters of compliance and tax obligations, regardless of their financial standing or public image.