Home Editor's Pick Billionaire Bitcoin Investor Michael Saylor Agrees to Pay $40 Million in Tax Fraud Settlement

Billionaire Bitcoin Investor Michael Saylor Agrees to Pay $40 Million in Tax Fraud Settlement

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TLDR

Michael Saylor and his company MicroStrategy agreed to pay $40 million to settle a tax fraud lawsuit brought by the Washington, D.C., Attorney General.
The lawsuit alleged that Saylor evaded over $25 million in D.C. income taxes between 2005 and 2021 by falsely claiming residency in lower-tax states like Florida and Virginia.
Saylor denied the allegations and maintained that Florida is his home, but settled to avoid further litigation.
The settlement is the largest income tax recovery in D.C. history, according to Attorney General Brian Schwalb.
The case against Saylor was the first brought under an updated version of D.C.’s False Claims Act, which expanded tax enforcement powers and incentivized whistleblowers to come forward.

Billionaire bitcoin investor Michael Saylor and his company MicroStrategy have agreed to pay $40 million to settle a tax fraud lawsuit filed by the Washington, D.C., Attorney General’s office.

The lawsuit, brought by Attorney General Brian Schwalb, alleged that Saylor evaded over $25 million in D.C. income taxes between 2005 and 2021 by falsely claiming residency in lower-tax states such as Florida and Virginia.

According to the complaint, Saylor’s actual home was a luxury penthouse apartment in Washington, D.C., overlooking the Georgetown waterfront, where he also kept his yachts on the Potomac River.

The attorney general charged both Saylor and MicroStrategy with tax evasion, claiming that the company helped its founder disguise his D.C. residency to avoid paying higher income taxes.

Saylor denied the allegations and maintained that Florida is his home. In a statement, he said,

“I continue to dispute the allegation that I was ever a resident of the District of Columbia. I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself.”

MicroStrategy, founded by Saylor in 1989, initially focused on software consulting and data analytics.

In 2020, the company shifted its focus to the cryptocurrency market and has since amassed billions of dollars worth of bitcoin. Saylor’s net worth is estimated to be around $4.6 billion, according to Forbes.

The case against Saylor was the first brought under an updated version of the False Claims Act in the District of Columbia.

The update expanded the attorney general’s tax enforcement powers and incentivized whistleblowers to come forward by offering rewards of up to 25% of the district’s winnings in successful cases.

Attorney General Schwalb called the $40 million settlement the largest income tax recovery in D.C. history. He stated,

“Tax cheats are freeloading off the backs of hardworking, law-abiding, taxpaying District residents while depriving our city of resources needed for critical programs.”

The settlement comes amid increased scrutiny of high-profile individuals and their tax practices. Recently, Roger Ver, another prominent figure in the cryptocurrency world, was arrested in Spain on charges of providing inaccurate information to dodge a $48 million tax bill.

The post Billionaire Bitcoin Investor Michael Saylor Agrees to Pay $40 Million in Tax Fraud Settlement appeared first on Blockonomi.

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