Billionaire Bitcoin Investor Michael Saylor Settles $40 Million Tax Fraud Lawsuit

Billionaire Bitcoin Investor Michael Saylor Settles $40 Million Tax Fraud Lawsuit

The post Billionaire Bitcoin Investor Michael Saylor Settles $40 Million Tax Fraud Lawsuit appeared first on Coinpedia Fintech News

Billionaire bitcoin investor Michael Saylor and his company, MicroStrategy, have settled a tax fraud lawsuit brought by the Washington, D.C., attorney general. The lawsuit alleged that Saylor evaded over $25 million in District of Columbia income taxes by falsely claiming residency in lower-tax states like Florida and Virginia. 

Now, after months of legal proceedings, Saylor and MicroStrategy have agreed to pay $40 million to settle the case, marking a significant development in the ongoing saga.

MicroStrategy Agreed to Pay $40 M Fine

The lawsuit, filed by former 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 aim to put an end to the legal dispute.

Further, the lawsuit revealed that Saylor’s actual residence was a luxury penthouse apartment in Washington, overlooking the Georgetown waterfront, where he reportedly 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 consequence of the lawsuit, Saylor resigned from his position as CEO of MicroStrategy in August 2022, though he retained roles as executive chairman and chairman of the board of directors. 

Despite the legal challenges, Saylor has continued to promote MicroStrategy as a Bitcoin-friendly company, regularly announcing new Bitcoin purchases on his social media platforms.

MicroStrategy’s Bitcoin Holding

Saylor’s involvement with Bitcoin has been a central focus of his tenure at MicroStrategy. In March 2024, the firm made a substantial Bitcoin purchase, acquiring 12,000 BTC through an $800 million convertible note offering. 

Presently, MicroStrategy holds 214,400 bitcoins, purchased at an average price of $35,000 per BTC, with a total investment of around $7.5 billion. 

Meanwhile, the ongoing resolution of the tax fraud lawsuit against Michael Saylor and MicroStrategy marks a significant milestone in the ongoing legal saga. During the legal process, Saylor stayed a key figure in the crypto world, supporting Bitcoin.