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Michael Saylor and MicroStrategy Sued for Tax Fraud

Key Takeaways

  • The District of Columbia is suing Michael Saylor and MicroStrategy for alleged tax fraud.
  • D.C. Lawyer Basic Karl Racine introduced the go well with on Twitter as we speak, accusing Saylor of avoiding as a lot as ten years’ price of revenue taxes.
  • MicroStrategy inventory dropped 5% as information of the fees broke.

Billionaire Bitcoin whale Michael Saylor is being sued by the District of Columbia, the place he at the moment resides, for tax fraud. D.C. Lawyer Basic Karl Racine made the announcement Wednesday on Twitter.

Saylor Faces Tax Fraud Swimsuit

One in all Bitcoin’s largest whales has some authorized bother to deal with.

MicroStrategy CEO Michael Saylor is going through a lawsuit on tax fraud allegations, Washington D.C. Lawyer Basic Karl Racine introduced Wednesday.

NEW: At this time, we’re suing Michael Saylor – a billionaire tech govt who has lived within the District for greater than a decade however has by no means paid any DC revenue taxes – for tax fraud.

— AG Karl A. Racine (@AGKarlRacine) August 31, 2022

“At this time, we’re suing Michael Saylor – a billionaire tech govt who has lived within the District for greater than a decade however has by no means paid any DC revenue taxes – for tax fraud,” Racine wrote in a tweet.

Racine added that Washington D.C. was additionally suing MicroStrategy “for conspiring to assist [Saylor] evade taxes he legally owes on lots of of tens of millions of {dollars} he’s earned whereas dwelling in DC.”

Michael Saylor is most notable within the crypto area for his ongoing and vocal public help for Bitcoin. He ceaselessly seems on the crypto convention circuits to tout the virtues of the market’s flagship cryptocurrency and encourage attendees to build up as a lot as potential.

On this regard, Saylor places his cash the place his mouth is; his firm, MicroStrategy, which originated as a enterprise intelligence software program firm, has pivoted towards a Bitcoin accumulation technique below Saylor’s management. In the beginning of the month, Saylor stepped apart as MicroStrategy’s CEO however remained chairman of the board; he additionally assumed a substantive govt place specializing in “Bitcoin acquisition technique and associated Bitcoin advocacy initiatives.”

This isn’t the primary time that Saylor and his firm have run into bother with regulation enforcement. In 2000, the Securities and Alternate Fee introduced civil accounting fraud expenses in opposition to MicroStrategy for misrepresenting the corporate’s monetary data for 2 years. That case ended with a settlement that resulted in Saylor personally disgorging $8.2 million and paying a further $350,000 in penalties.

MicroStrategy shares dropped 6% upon information of the lawsuit.

Disclosure: On the time of writing, the authors of this piece owned BTC, ETH, and a number of other different cryptocurrencies. This story is breaking and will probably be up to date as additional particulars emerge.

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