The District of Columbia (USA) sued MicroStrategy and its Chairman, Michael Saylor. The prosecution accuses them of fraud for tax evasion.

“The seaman deliberately avoided paying the taxes he was due to the county. While living in the area from 2005 to the present, he scammed like a resident of a jurisdiction with lower tax rates,” he says.

The prosecution estimates Sailor’s debt is $25 million.

The document says that MicroStrategy’s founder lives in Colombia at least 183 days a year. This is enough to obtain taxpayer status.

According to State Attorney General Carl Racine, MicroStrategy “aided” its founder in tax evasion. for declarations IRS The company stated that Saylor lives in Florida.

We’re also suing his company, MicroStrategy, for conspiring to help him evade the taxes he’s legally owed on the hundreds of millions of dollars he earned while living in DC.

— AG Karl A. Racine (@AGKarlRacine) 31 August 2022

The case was brought under the False Claims Act. The latter “encourages whistleblowers to report residents who are evading taxes,” according to Racine.

Speaking to Bloomberg, Saylor emphasized that he did not agree with the allegations:

“I respectfully disagree with the position of the District of Columbia and hope to find a fair resolution in court.”

MicroStrategy described the prosecution’s claims as “false”. A spokesperson for the company said it plans to “aggressively” defend its interests.

Recall that in August 2022 Saylor left MicroStrategy CEO to focus on “innovation and long-term corporate strategy”, which means more buying and holding of bitcoin.

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