June 4, 2024
Latest Cryptocurrency News

Saylor, MicroStrategy Settle $40 Million Tax Fraud Lawsuit

On June 3, the New York Times reported that technology firm MicroStrategy and its pro-Bitcoin founder, Michael Saylor, have agreed to a $40 million settlement to resolve a lawsuit accusing Saylor of evading income taxes. The attorney general for the District of Columbia announced the settlement, marking the largest-ever income tax fraud recovery in the district’s history.

Landmark Case Under Amended False Claims Act

The District of Columbia’s lawsuit against Saylor and MicroStrategy, filed in August 2022, was the first under the district’s amended False Claims Act. This amendment encourages whistle-blowers to file tax evasion claims against residents suspected of hiding their residence information. Local officials claim the agreement as a major victory, underscoring the district’s commitment to enforcing tax laws.

The lawsuit alleged that Saylor avoided paying income taxes in the district for at least 10 years, despite living there. It accused MicroStrategy of assisting Saylor in evading more than $25 million in DC income tax. Initially, experts estimated that Saylor could face up to $75 million in penalties.

Saylor’s Resignation and New Role

The tax fraud suit had significant repercussions for Michael Saylor. In August 2022, he resigned as CEO of MicroStrategy, a company he founded 33 years ago. Despite stepping down as CEO, Saylor immediately transitioned to the role of executive chairman and continues to serve as chairman of the board of directors.

This settlement brings closure to a high-profile case that has captured the attention of both the tech and financial communities, highlighting the importance of compliance with tax regulations and the potential consequences of evasion.

Image by jcomp on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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