The software company MicroStrategy and its founder Michael Saylor have settled a tax evasion lawsuit for $40 million.
As reported by The New York Times on June 3, the settlement was confirmed by the attorney general of the District of Columbia.
This case is the district’s largest income tax fraud recovery, using the updated False Claims Act to encourage whistleblowers to report tax evasion.
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The lawsuit, filed in August 2022, accused Saylor of evading over $25 million in DC income taxes for at least a decade, with MicroStrategy allegedly helping in the scheme.
Legal experts initially estimated potential penalties for Saylor could reach $75 million.
Saylor has become a notable figure within the crypto community for his strong advocacy for Bitcoin. His involvement with Bitcoin began in 2020 when he announced that he had purchased 17,732 BTC for $175 million, marking a shift from his earlier skepticism.
This advocacy is reflected in MicroStrategy’s Bitcoin investments, which make the company the largest holder of the cryptocurrency. A notable acquisition by MicroStrategy occurred in February 2024, when the company purchased 3,000 BTC.
This settlement marks the end of a challenging legal chapter for Saylor and MicroStrategy, highlighting the increasing scrutiny of crypto figures regarding tax compliance.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era. With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers. Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners. Aaron has been quoted by multiple established outlets and is a published author himself. Even during his free time, he enjoys researching the market trends and looking for the next supernova.
