Bitcoin
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 filed 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 agreed to pay US$40 million to solve the case, marking a significant development in the ongoing saga.
MicroStrategy agreed to pay $40 million fine
The process, 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 intend to put an end to the legal dispute.
Additionally, the lawsuit revealed that Saylor’s actual residence was a luxury Washington penthouse overlooking the Georgetown waterfront, where he allegedly kept his yachts on the Potomac River. With a net worth of approximately $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 resigned as CEO of MicroStrategy in August 2022, although he retained the roles of executive chairman and chairman of the board of directors.
Despite legal challenges, Saylor continued to promote MicroStrategy as a Bitcoin-friendly company, regularly announcing new Bitcoin purchases on its social media platforms.
MicroStrategy Bitcoin Holding
Saylor’s involvement with Bitcoin has been a central point focus of his management at MicroStrategy. In March 2024, the company made a substantial purchase of Bitcoin, acquiring 12,000 BTC through an $800 million convertible note offering.
At the moment, MicroStrategy maintains 214,400 bitcoins, purchased at an average price of US$35,000 per BTC, with a total investment of around US$7.5 billion.
Meanwhile, the ongoing resolution of the tax fraud case against Michael Saylor and MicroStrategy marks a significant milestone in the ongoing legal saga. During the legal process, Saylor remained a key figure in the crypto world, supporting Bitcoin.