Michael Saylor, co-founder of Microstrategy and popularly known for his Bitcoin investments, is being sued by Washington, DC., for evading income taxes for more than 15 years. He is said to have skipped paying nearly $25 million in taxes even though he lived there for more than 10 years. The plaintiff alleged that Michael has been claiming to be a resident of other lower-tax jurisdictions like Virginia despite living in DC for so long, and this has been going on since 2005.
Michael Saylor’s reply to the lawsuit
In the lawsuit filed by DC, they also claimed that Michael has been living in a luxurious penthouse in Georgetown and has boats docked on the Potomac riverfront. To this, Michael replied by saying that he disagrees with the allegations and had moved to his historic house on Miami beach almost 10 years back. So, he looks forward to a fair hearing by the court.
Michael also said that his company Microstrategy is based in Virginia; he lives in Florida, where his entire life is present. He says this because the lawsuit also involves Microstrategy, who have been allegedly helping Michael evade taxes. They supposedly knew that Michael had been living in DC for so long, which makes him a legal resident who has to pay taxes.
This lawsuit began when a whistleblower claimed that Michael had been flaunting his lifestyle and bragging that he had been evading taxes by claiming to live somewhere else.
What will it mean for Microstrategy and Bitcoin?
Michael has been a major supporter of the Bitcoin market, but his getting dragged into a lawsuit wouldn’t have much of an impact on BTC’s price. However, it’s bad news for Microstrategy, which is already down 3.6% after the news broke out. Its share price is already down nearly 57% in 2022 and has followed Bitcoin’s price trajectory because of the company’s massive holdings. There was a point when the company valuation was less than the BTC they were holding on their balance sheet. It shows how messed up the entire situation is and the current state of the company.
What are your thoughts as Michael Saylor is being sued for evading taxes? And do you think this will escalate into something big? Let us know in the comment below. And, if you found our content informative, share it with your family and friends.
Also Read: JPMorgan Chief Global Strategist advises investors worldwide to sell crypto.
