Bitcoin Investor Michael Saylor Settles Tax Fraud Suit for $40 Million

Michael Saylor, bitcoin investor and founder of software firm MicroStrategy, agreed to pay $40 million to settle a tax fraud lawsuit by the D.C. Attorney General, the largest income tax recovery in the district’s history.

The lawsuit alleged that Saylor lived in D.C. but pretended to be a resident of Florida or Virginia to avoid paying D.C. taxes. He openly bragged about his maneuver to friends and acquaintances, the lawsuit said.

MicroStrategy and Saylor entered a settlement with D.C. on May 31, without admitting to any allegations. In a filing, MicroStrategy said Saylor will make the $40 million in full and the company will not make any contribution.