State of Washington Files Lawsuit Against MicroStrategy and Its Founder

Michael Saylor and MicroStrategy are facing a lawsuit in Washington, DC. The cloud computing software firm and its founder are charged with tax fraud.

Allegedly, Saylor reported that he was living in Florida, a state that has eliminated income taxes, while actually residing in DC between 2014 and 2020. In addition, MicroStrategy is accused of filing false statements to support Saylor’s fraud.

Both Saylor and MicroStrategy have denied the accusations. Taking into consideration both the unpaid taxes and penalties administrated by the court, Saylor and MicroStrategy could be paying more than $100 million if found guilty.

MicroStrategy has the largest Bitcoin treasury among all public companies. In late June, it possessed 129,699 BTC (worth almost $2.6 billion). Currently, Saylor is operating as its executive chairman.