MicroStrategy and CEO Saylor Settle Tax Fraud Case for $40M

Crypto News Business

MicroStrategy and Founder Michael Saylor Settle Tax Fraud Case for $40M

Written by Aaron S.,

Editor-In-Chief

Last Updated: June 03, 2024

Key Takeaways

Michael Saylor and MicroStrategy settled a tax evasion lawsuit for $40 million;
The lawsuit accused Saylor of evading over $25 million in DC income taxes for a decade, with MicroStrategy allegedly aiding in the scheme;
Saylor is known in the crypto industry for being a prominent Bitcoin advocate since 2020.

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MicroStrategy and Founder Michael Saylor Settle Tax Fraud Case for $40M

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The software company MicroStrategy and its founder Michael Saylor have settled a tax evasion lawsuit for $40 million.

As reported by The New York Times on June 3, the settlement was confirmed by the attorney general of the District of Columbia.

This case is the district’s largest income tax fraud recovery, using the updated False Claims Act to encourage whistleblowers to report tax evasion.

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The lawsuit, filed in August 2022, accused Saylor of evading over $25 million in DC income taxes for at least a decade, with MicroStrategy allegedly helping in the scheme.

Legal experts initially estimated potential penalties for Saylor could reach $75 million.

Saylor has become a notable figure within the crypto community for his strong advocacy for Bitcoin. His involvement with Bitcoin began in 2020 when he announced that he had purchased 17,732 BTC for $175 million, marking a shift from his earlier skepticism.

This advocacy is reflected in MicroStrategy's Bitcoin investments, which make the company the largest holder of the cryptocurrency. A notable acquisition by MicroStrategy occurred in February 2024, when the company purchased 3,000 BTC.

This settlement marks the end of a challenging legal chapter for Saylor and MicroStrategy, highlighting the increasing scrutiny of crypto figures regarding tax compliance.