Tech company MicroStrategy and its pro-Bitcoin founder Michael Saylor have reached a $40 million deal to end a lawsuit accusing it of income tax evasion.
The New York Times reported June 3 that the District of Columbia attorney general reached a $40 million settlement with Saylor and his software company MicroStrategy.
According to the report, local authorities assessed the deal as “the largest tax fraud recovery operation ever” in the region. It would also be the first trial under the District’s revised False Claims Act, which encourages whistleblowers to file tax evasion complaints against residents who allegedly withheld information about their residences.
The District of Columbia sued Saylor and his company MicroStrategy in August 2022, alleging the executive had not paid income taxes in the district for at least 10 years he had lived there.
The company is alleged to have helped Saylor evade more than $25 million in Washington income taxes. Experts had initially suggested that Saylor could be fined $75 million.
The tax fraud trial forced Saylor to resign as CEO of MicroStrategy in August 2022, 33 years after the company was founded. He immediately assumed the new role of Executive Chairman and continues to serve as Chairman of the Board of Directors.
This is a developing story, and more information will be added as it becomes available.
