MicroStrategy Tax Evasion Settlement Finalized With $40 Million Fine

Key Points:

• MicroStrategy’s Michael Saylor settles a $40 million tax dispute, the largest in D.C.’s history.
• Allegations revolve around Saylor’s residency claims versus evidence suggesting he lived in D.C.
• Saylor, a notable Bitcoin advocate, faces scrutiny over his views on cryptocurrency regulation amidst the MicroStrategy tax evasion settlement.

MicroStrategy Founder and Executive Chairman Michael Saylor has agreed to a $40 million settlement with the District of Columbia, the largest income tax fraud recovery in the district’s history.

MicroStrategy Tax Evasion Settlement Completed with Saylor Agrees to $40M Deal with D.C.

The attorney general’s office announced the MicroStrategy tax evasion settlement on Monday, as first reported by The New York Times.

The MicroStrategy tax evasion settlement resolves the allegations that Saylor, a prominent Bitcoin advocate, and his company conspired to evade over $25 million in district taxes. The case, led by Attorney General Brian L. Schwalb, focused on Saylor’s residency claims from 2005 to 2021. Although Saylor asserted that he lived in Florida, city attorneys presented evidence suggesting he resided in a luxury apartment and on yachts within the district.

In August 2022, the District of Columbia sued Saylor and MicroStrategy, alleging that Saylor did not pay income taxes in the district for over a decade and that the company aided in this tax evasion. Saylor denied any wrongdoing but agreed to the MicroStrategy tax evasion settlement without admitting guilt.

Saylor’s Role in the Crypto Community Amidst Tax Settlement

Michael Saylor is well-known in the crypto community for his mass investments and active social media presence. Despite his current status as a Bitcoin proponent, Saylor’s love for cryptocurrency actually started in 2020 when he announced a personal purchase of 17,732 BTC for $175 million. Prior to this, in 2013, Saylor had called out Bitcoin, saying it could be regulated out of existence.

The settlement further complicates Saylor’s narrative within the crypto space, where he recently made headlines for his views on Ethereum and other cryptocurrencies.

In a recent statement, he argued that altcoins like Cardano, Ethereum, and Solana are unregistered securities, echoing sentiments from SEC Chair Gary Gensler. Following Saylor’s comments, the SEC announced preliminary approvals for spot Ethereum ETFs.