Bitcoin Whale Michael Saylor Sued For Tax Fraud

Estimated read time 3 min read
  • United States D.C. Attorney General Karl Racine filed a lawsuit against Bitcoin whale Michael Saylor for allegedly evading taxes.
  • The D.C Attorney also filed a lawsuit against Microstrategy for conspiring to help Michael Saylor evade taxes.

Attorney General of D.C Karl Racine has filed a lawsuit against the publicly known holder of Bitcoin, Michael Saylor for allegedly Tax Evasion. The accusations made by  Karl Racin state that Michael Saylor has been living in the U.S for more than 10 years and has miserably failed to meet tax obligations.

Bitcoin Whale is allegedly being sued for failing to pay more than $25 million in Washington, DC income taxes by falsely claiming to live elsewhere.

The complaint states: Defendant Michael J. Saylor has unlawfully deprived the District of Columbia of
tens of millions of dollars in tax revenue. Defendant Saylor knowingly avoided income taxes he
owed to the District by fraudulently claiming to be a resident of other, lower-tax jurisdictions while
maintaining his domicile and place of abode in the District, including living in a luxury penthouse
on the Georgetown waterfront and docking multiple yachts on the District’s Potomac riverfront
from 2005 to present

Microstrategy Goes Down With Michael Saylor

Saylors company, MicroStrategy is also facing a lawsuit for allegedly helping Michael Saylor evade taxes while making “hundreds of millions of dollars he’s earned while living in DC”, Racine said via his official Twitter handle.

The Attorney general further added;

It’s the 1st lawsuit brought under DC’s recently amended False Claims Act encouraging whistleblowers to report residents who evade our tax laws by misrepresenting their residence (…). With this lawsuit, we’re putting residents and employers on notice that if you enjoy all the benefits of living in our great city while refusing to pay your fair share in taxes, we will hold you accountable.

The complaint document stated;

Defendant MicroStrategy knew that Saylor was in fact a District resident, but instead of accurately reporting his address to local and federal tax authorities and correctly withholding District taxes, the company conspired with Defendant Saylor to facilitate his tax avoidance scheme.

The complaint states that the tax evasion activity has been going on for more than 20 years. It additionally states that Micael Saylor owns a “luxury penthouse on the Georgetown waterfront” and own “multiple yachts”

Is Bitcoin A Tool For Evading Taxes?

The complaint document states that Michael Saylor failed to file a tax report on any investments made from 2005. This includes the Bitcoin purchase he made in 2020 which he bottled more than $ 1 billion in profits.

The Document states that Michael Saylor apparently said Bitcoin is an “ideal tool for evading taxes”, the document further adds

Owners of Bitcoin could tell their government to “go f—k yourself” and claim to have lost their Bitcoin access key, daring the government to “tax that”!

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