Bitcoin billionaire Michael Saylor and his software company MicroStrategy have agreed to pay $40 million to resolve a tax fraud lawsuit the District of Columbia filed. This marks the largest income tax recovery in the city’s history.
The lawsuit alleged that Saylor, despite living in a luxury Georgetown penthouse and owning yachts docked in D.C., claimed residency in Virginia and Florida to avoid paying taxes. Prosecutors claimed Saylor had lived in D.C. since 2005 and owed over $25 million in back taxes.
Saylor maintains his primary residence has been Miami Beach since 2012. While both he and MicroStrategy deny wrongdoing, they settled the case to avoid further legal burdens. MicroStrategy also clarified its role, stating it “was not responsible for his day-to-day affairs and did not oversee his individual tax responsibilities.”
This case was initiated under D.C.’s False Claims Amendment Act, which incentivizes whistleblowers to report tax fraud by offering a share of recovered funds. Tributum, a Wyoming-based company, brought the initial claim, and later expanded by the D.C. Attorney General’s office.
The settlement comes amidst a challenging time for Saylor. He stepped down as MicroStrategy CEO in 2022 and the company’s Bitcoin holdings have experienced significant losses. Despite these setbacks, MicroStrategy remains the world’s largest corporate holder of Bitcoin.
