Michael Saylor, a prominent Bitcoin advocate, and his software company, MicroStrategy, have agreed to a $40 million settlement to resolve tax evasion charges levied by the District of Columbia (D.C.) attorney general.

Largest Case in D.C. History

This case, the largest in D.C. history, accused Saylor of illegally avoiding taxes on hundreds of millions of dollars of income.

D.C. Attorney General Brian Schwalb highlighted that Saylor violated the law. He boasted publicly about his evasion tactics, encouraging others to emulate his actions. Schwalb also criticized tax evaders like Saylor for burdening honest, hardworking taxpayers in Washington.

Saylor illegally pretended to live in lower-tax jurisdictions to avoid paying taxes on hundreds of millions of dollars of income -- all while living in a 7,000-square-foot Georgetown penthouse and docking multiple yachts at Washington Harbour.

Saylor's Response

Michael Saylor maintains his stance against the accusations despite agreeing to the settlement. In an interview with The New York Times, he still claims he resides in Florida until today.

"I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself," the MicroStrategy founder and Bitcoin billionaire said.

The lawsuit against him in August 2022 claimed Saylor failed to pay over $25 million in Washington D.C. income taxes. He responded to the lawsuit allegedly misrepresenting his residence as either Florida or Virginia.

The district amended the complaint to implicate MicroStrategy, accusing the company of aiding in the concealment of Saylor's actual place of residence, thus violating D.C.'s False Claims Act.

Legal Proceedings

Initially, Saylor denied these allegations, asserting his residency in Florida and filing a motion to dismiss the charges.

However, in March 2023, a U.S. judge denied his motion, rejecting claims that Saylor and MicroStrategy conspired to violate the False Claims Act. The court dismissed a separate claim against Saylor, alleging that he violated the same provision.

Ongoing Tax Compliance Efforts

Saylor's settlement represents ongoing efforts to enforce tax laws and ensure compliance among wealthy individuals and corporations, including in the crypto industry.

BeInCrypto previously reported that Roger Ver, known as "Bitcoin Jesus," faces charges including mail fraud, tax evasion, and filing false tax returns.

Ver allegedly provided false information to his legal and tax advisors, leading to significant underreporting of his assets. By 2017, Ver is accused of having controlled and sold about 70,000 Bitcoin (BTC), amounting to approximately $240 million.

This transaction was not reported to the IRS, resulting in a tax loss of at least $48 million. Following these charges, Spanish authorities arrested Ver. Currently, the U.S. is seeking his extradition.