Bitcoin bro Michael Saylor sued for tax fraud — full coverage

YEREVAN (CoinChapter.com) — Michael Saylor, co-founder of business intelligence and data visualization firm MicroStrategy, has come under the scanner. Just weeks after he resigned from his post as the company CEO, the Office of Attorney General for the District of Columbia (OAG) filed a case against him for tax fraud. 

The OAG is suing Saylor on charges of “unlawfully deprived the District of tens of millions of dollars in tax revenue.” According to the authorities, the Bitcoin (BTC) maximalist entrepreneur evaded over $25 million in taxes. 

As the lawsuit alleges, Saylor avoided paying income tax in Washington, DC, for ten years despite living in the country’s capital. Instead, he lied to authorities and claimed he was residing in lower-tax jurisdictions like Florida and Virginia. 

“The company reported to the Internal Revenue Service on form W-2s for taxable years 2014 through 2021 that Defendant Saylor’s address was that of his house in Florida rather than his true place of abode,” 

the lawsuit reads.

The former MicroStrategy CEO allegedly bought a house in Miami Beach to cover up his actions. Moreover, he obtained a driver’s license from the state of Florida along with state voter registration.

Meanwhile, to prove that Saylor lived in Washington DC, the Attorney General’s office has included several screenshots from his social media posts from 2012. 

In the screenshots, Saylor can allegedly be seen showing off his future home located in DC.

Did MicroStrategy help Michael Saylor evade taxes? 

Karl A. Racine, the Attorney General for the District of Columbia, announced the lawsuit on his official Twitter handle. 

As Racine made it clear, the lawsuit also serves as a notice to all residents and employees of DC to refrain from illegal tax evasion. The OAG will hold all those accountable who fail to pay their taxes while enjoying the benefits of living in the capital. 

“It’s the 1st lawsuit brought under DC’s recently amended False Claims Act encouraging whistleblowers to report residents who evade our tax laws by misrepresenting their residence,”

 Racine said. 

The Attorney General also alleged that his company MicroStrategy was complicit in the alleged crime. According to the post, the firm helped Saylor evade hundreds of millions of dollars in taxes despite knowing he lived in Washington. 

Meanwhile, MicroStrategy denied playing any role in Saylor’s tax issues. In a statement quoted by Eamon Javers, Senior Washington Correspondent for CNBC, the firm called the District of Columbia’s claims against the company “false.” MicroStrategy also promised to “defend aggressively against this overreach.”

“The case is a personal tax matter involving Mr. Saylor. The Company was not responsible for his day-to-day affairs and did not oversee his individual tax responsibilities,” 

the firm said. 

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Despite the damning allegations, the former chief of MicroStrategy appeared unphased. Stating his intention to defend himself in the court of law, he stated his disagreement with Attorney General.

“I respectfully disagree with the position of the District of Columbia, and look forward to a fair resolution in the courts. Although MicroStrategy is based in Virginia, Florida is where I live, vote, and have reported for jury duty, and it is at the center of my personal and family life,”

 Bloomberg quoted Saylor in a report. 

Meanwhile, the shares of MicroStrategy took a hit, shedding over 9% after the news. 

Under Saylor’s leadership, MicroStrategy acquired Bitcoin (BTC) worth close to $4 billion at an average price of $30,700 each. However, in early August 2022, Saylor stepped down as the CEO, making way for Phong Le to take over the position. 

The decision came after the company reported almost $918 million in losses on Bitcoin (BTC) holdings in this year’s second quarter (Q2).