Saylor Suit

One of the biggest Bitcoin whales has been targeted for a lawsuit related to tax evasion. Former CEO of MicroStrategy Michael Saylor may soon have to defend himself against accusations levied against him and the company in Washington D.C.

• A tax fraud lawsuit has been announced against Michael Saylor and MicroStrategy.
• On August 31st, D.C. Attorney General Karl Racine announced on Twitter, “Today, we’re suing Michael Saylor – a billionaire tech executive who has lived in the District for more than a decade but has never paid any DC income taxes – for tax fraud.”
• Authorities are accusing Saylor of intentionally misrepresenting his residence status to reap the benefits of lower tax rates.
• The complaint, filed August 22nd, stated that Saylor “knowingly avoided income taxes he owed to the District by fraudulently claiming to be a resident of other lower-tax jurisdictions”.
• The case listed MicroStrategy as a co-defendant, claiming the company helped to conceal Saylor’s actual place of residence.
• MicroStrategy responded with a statement, claiming the matter was personal involving Mr. Saylor, adding “The company was not responsible for his day-to-day affairs and did not oversee his individual tax responsibilities.”

Saylor stepped down from the CEO position earlier this year and assumed an executive chairman role instead. Regardless of the lawsuit’s outcome, we’ll have to see how this publicity affects the future of MicroStrategy.