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MicroStrategy Settles $40M Tax Fraud Case

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Michael Saylor, a supporter of Bitcoin and the creator of MicroStrategy, has successfully reached a $40 million agreement with the District of Columbia.

This settlement stands as the greatest ever recovery for cases involving income tax evasion in the district. The settlement was reached using the district’s updated False Claims Act, which provides incentives for whistleblowers to uncover instances of tax evasion.

Saylor was accused of avoiding more than $25 million in taxes and used deceptive tax filing methods between 2005 and 2020. The complaint alleges that MicroStrategy provided Saylor with security particulars and chauffeurs, so enabling the firm to ascertain his actual place of abode.

Attorney General Brian L. Schwalb accused Saylor and MicroStrategy of defrauding the district and its people over an extended period. Saylor had opulent residences in Georgetown, Washington, D.C., and spent millions of dollars on refurbishing three condominiums he acquired from 2006 to 2008.

Last month, MicroStrategy has developed a new decentralized identity system called ‘MicroStrategy Orange’. Michael Saylor made the announcement during the ‘Bitcoin For Corporations’ conference on May 1.

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