MicroStrategy’s Michael Saylor Sued by DC for Tax Fraud

• The District of Columbia has sued Michael Saylor for tax evasion in Washington.
• The DC attorney general also sued MicroStrategy for conspiring with Saylor to evade taxes.
• Saylor stepped down as the CEO of MicroStrategy, earlier this month.

In a recent lawsuit filed on Wednesday, the District of Columbia is suing Michael Saylor, founder of MicroStrategy, for evading nearly $25 million. The DC attorney general, Karl Racine, has accused Saylor of hiding taxable income from the district while living in Washington for over a decade.

Additionally, Racine stated that he is suing Saylor’s company, MicroStrategy, as well for conspiring to help Michael evade taxes. Moreover, the attorney general is seeking to recover over $100 million of unpaid taxes and penalties from Saylor and MicroStrategy.

Michael refuted the allegations pressed by the District of Columbia by claiming:

I respectfully disagree with the position of the District of Columbia and look forward to a fair resolution in the courts.

To focus on MicroStrategy’s bitcoin plans, Saylor stepped down as the company’s CEO earlier this month. Following that, MicroStrategy reported an aggregate loss of nearly $2 billion on its crypto holdings. By the end of Q2 of 2022, the firm held about 129,699 bitcoins, which were initially acquired at an average price of $30,700 per unit.

While speaking of the lawsuit, MicroStrategy claimed that they were not responsible for Saylor’s day-to-day affairs and did not look into his tax responsibilities. The MicroStrategy spokesperson shrugged off the allegations by throwing Saylor under the bus by stating that the company did not “conspire with Mr. Saylor in the discharge of his personal tax responsibilities. The District of Columbia’s claims against the company are false.”