MicroStrategy founder Michael Saylor, a prominent Bitcoin investor, has reached a settlement with the Washington D.C. Attorney General’s office in a case involving income tax fraud. Saylor has agreed to forfeit $40 million to resolve the litigation.
The case against Saylor was initially announced by D.C. Attorney General Karl Racine in August 2022. The office accused Saylor of falsely claiming residency in “lower tax jurisdictions” while actually living in a luxury penthouse in Georgetown and docking his yachts on the Potomac riverfront since 2005.
According to the official complaint, Saylor used company documents to conceal his true residence and evade paying income tax, resulting in substantial losses for D.C. in the tens of millions of dollars.
D.C. Attorney General Brian Schwalb claimed that Saylor openly boasted about his tax evasion scheme and encouraged others to follow suit. Schwalb emphasized the importance of holding tax cheats accountable, as they deprive the district of crucial resources for public services.
Despite being the largest income tax recovery in D.C.’s history, Saylor maintains his innocence and denies any wrongdoing. He asserts that Florida is his current home and disputes the allegation that he was ever a resident of D.C. Saylor agreed to settle the case to avoid further litigation burdens on himself, his friends, and his family.
Saylor, who is currently worth $4.8 billion, has been a strong advocate for digital assets. In 2020, as the CEO of MicroStrategy, he invested hundreds of millions of company funds into Bitcoin. He later stepped down from the CEO position to become the executive chairman, focusing the company’s efforts on Bitcoin.
Following the news of Saylor’s settlement, MicroStrategy stock experienced a 5% increase on Monday morning.