- Michael Saylor and MicroStrategy are being sued by DC
- The lawsuit alleges the former CEO conspired with the company to evade taxes.
- The lawsuit demands more than $25 million in taxes and fines.
The largest bitcoin holder, MicroStrategy and its Executive Chairman Michael Saylor are being sued by the District of Columbia (DC) for alleged tax fraud, according to a notification from the DC Attorney General.
The complaint Allegs that Saylor knowingly avoided income taxes for DC while fraudulently claiming to be a resident of a lower tax jurisdiction while maintaining her residency in DC Additionally, the lawsuit alleges that MicroStrategy conspired with Saylor by knowingly hiding his real address from local and federal tax authorities.
“Based on information and belief, since 2005 Saylor has avoided more than $25 million in District taxes,” reads the complaint.
Furthermore, the complaint reiterates events from the 1980s when Saylor initially founded the company, to the relocation of the company’s headquarters to avoid the tax burden in the 90s, to his was a frequent user of yachts anchored in the Potomac River for many years.
“Defendant Saylor has been a resident of the District, or a legal resident of the District, or both, for each of the tax years from 2005 to the present,” the lawsuit continued.
The complaint alleges that Saylor has also made “contempt” social media posts on Facebook, supporting the claim that he has lived in the area since 2005.
More recently, it is announced that Saylor will step down from the aforementioned CEO role to assume the position of Executive Chairman. The move is intended to allow Saylor to focus on bitcoin initiatives within the ecosystem as well as further driving MicroStrategy’s bitcoin acquisition strategy.