MicroStrategy and Michael Saylor Settle $40M Tax Evasion Suit, Continue Bitcoin Dominance
Summary:
Tech firm MicroStrategy and its founder, Michael Saylor, have settled a tax evasion lawsuit for $40 million, marking the biggest ever income tax fraud recovery in the District of Columbia. The lawsuit forced Saylor to resign as CEO but he continues to promote the firm and has sustained their Bitcoin-friendly image. Despite not being an early adopter of Bitcoin, Saylor has emerged as a major advocate, buying 214,400 bitcoins as of May 1, 2024.
MicroStrategy, a tech company, along with its Bitcoin enthusiast founder, Michael Saylor, have settled a lawsuit accusing Saylor of tax evasion, to the tune of $40 million. The settlement was reported by The New York Times on the 3rd of June, stating that it was reached between the District of Columbia's attorney general, Michael Saylor and his company, MicroStrategy. Local officials have hailed this settlement as the largest income tax fraud recovery ever in the district. This case is notable as it's the first under the district's updated False Claims Act, which prompts whistleblowers to make tax evasion allegations against residents suspected of withholding true residency information. The District of Columbia took legal action against Saylor and MicroStrategy in August 2022, claiming that Saylor hadn't paid income taxes in the district during the ten years he resided there. The allegations suggest that the company aided Saylor in dodging over $25 million in income taxes in DC. Initial estimations posited that penalties for Saylor could reach up to $75 million. The tax fraud lawsuit led to Saylor's resignation as MicroStrategy's CEO in August 2022, 33 years post the company's founding. He immediately took up the position of executive chairman and retained his role as chairman of the board of directors. Despite stepping down from the CEO post, Saylor has continued to uphold MicroStrategy's reputation as a crypto-friendly firm, often declaring new Bitcoin (BTC) purchases through his account. One of the company's considerable recent acquisitions happened in March 2024 when it purchased 12,000 BTC through an $800 million convertible note offering. As reported in the company's latest news, MicroStrategy held 214,400 bitcoins as of May 1st, 2024, bought at an average cost of $35,000 per BTC, amounting to roughly $7.5 billion. Saylor has become a prominent figure among Bitcoin investors and a technological influencer due to his lavish investments and prominent Bitcoin-related activities on social media. He's often asked to give speeches at industry events. Saylor's route to becoming a Bitcoin billionaire began only in 2020, when he reported on Twitter buying 17,732 BTC worth $175 million. Before this, he was less known as a Bitcoin supporter. Back on December 7, 2013, he stated, "Lacking a credible sponsor, Bitcoin is in imminent danger of being regulated out of existence.
Published At
6/3/2024 4:21:11 PM
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