MicroStrategy founder, Michael Saylor, a prominent supporter of Bitcoin, has agreed to a $40 million settlement to resolve income tax fraud allegations made against him by the Washington D.C. Attorney General’s office. The settlement comes after the office accused Saylor of falsely claiming to be a resident of “lower tax jurisdictions” while living in a luxury penthouse in Georgetown and docking his yachts on the Potomac riverfront since 2005. It was alleged that Saylor used false records and statements to evade paying his income tax, resulting in significant losses for the District. D.C. Attorney General Brian Schwalb stated that Saylor openly boasted about his tax evasion scheme and encouraged others to do the same. Despite being the largest income tax recovery in D.C.’s history, Saylor maintains his innocence and denies ever being a resident of the District. Saylor, who is valued at $4.8 billion, has been a strong advocate for digital assets and made substantial investments in Bitcoin during his tenure as MicroStrategy CEO. Following news of the settlement, MicroStrategy stock rose by approximately 5% on Monday morning.
