MicroStrategy, a tech firm led by pro-Bitcoin advocate Michael Saylor, has reached a $40-million settlement to resolve a lawsuit accusing Saylor of evading income tax.
The New York Times revealed that the attorney general for the District of Columbia has finalized a $40-million agreement with Saylor and his company, MicroStrategy.
Largest-Ever Tax Fraud Recovery
Local authorities hailed the settlement as the “biggest-ever income tax fraud recovery” in the district, marking a significant legal victory.
The lawsuit, filed in August 2022, alleged that Saylor had not paid income taxes in the district for over a decade. MicroStrategy was accused of assisting Saylor in evading over $25 million in D.C. income tax.
As a result of the lawsuit, Saylor stepped down as CEO but remained as executive chairman and chairman of the board of directors.
MicroStrategy’s Bitcoin Ventures
Despite legal challenges, MicroStrategy continues its Bitcoin-friendly stance. The company made headlines with a recent purchase of 12,000 BTC worth $800 million through a convertible note offering in March 2024.
The company currently holds 214,400 BTC, acquired at an average price of $35,000 per BTC, totaling approximately $7.5 billion. Saylor’s active involvement in the Bitcoin space has solidified his status as a prominent figure and advocate within the cryptocurrency community.
