- The settlement, according to the attorney general’s office, represents the biggest income tax fraud recovery in its annals.
According to a press statement dated June 3, Washington, D.C. Attorney General Brian Schwalb announced an unprecedented $40 million tax fraud recovery deal with Michael Saylor and his company, MicroStrategy.
Saylor and MicroStrategy have denied any misconduct even in light of the payment. They said that the purpose of the agreement was to lessen the burden of litigation and prevent more legal issues.
Saylor is an outspoken supporter of Bitcoin, and MicroStrategy is the owner of over 200,000 BTC, or almost $14 billion.
Tax evasion
Saylor allegedly avoided paying over $25 million in income taxes while residing in Washington, D.C., which led to the settlement.
Saylor was charged by the attorney general’s office with working with MicroStrategy to submit fictitious tax returns between 2005 and 2021, ostensibly claiming to be a resident of Virginia or Florida, jurisdictions with lower income tax rates.
Schlabb asserted, however, that Saylor lived “in a Georgetown penthouse spanning 7,000 square feet and docked multiple yachts at Washington Harbour.”
MSTR distributes
Shares of the Bitcoin development business are unaffected by the settlement deal.
As of the time of publication, MSTR’s shares were trading at $1,615, up around 7% on the day. This keeps up a winning run for a stock tied to Bitcoin that has increased by 133% year to date.
Notably, the company’s shares were added to the MSCI World Index after BlackRock, the biggest asset management organization in the world, paid roughly $6.1 million for 4,020 shares of MSTR.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
