Last Updated on September 1, 2022 by Bitfinsider

Washington, D.C. is suing MicroStrategy Inc. co-founder and Executive Chairman Michael Saylor for tax fraud, claiming that he failed to pay more than $25 million in income taxes after having lived in the district for more than ten years. Saylor is perhaps best known as the largest corporate buyer of Bitcoin.

Saylor allegedly illegally claimed to be a resident of other, lower-tax jurisdictions, such as Virginia and Florida, in order to avoid paying taxes that is long due since 2005. According to the case, which was filed with the D.C. Superior Court’s civil division, it asserts that Saylor kept a number of yachts berthed on the Potomac riverside in Georgetown and resided in a lavish apartment there.

On Wednesday, D.C. Attorney General Karl Racine tweeted about the case.

Saylor said: “I respectfully disagree with the position of the District of Columbia, and look forward to a fair resolution in the courts,” and further added that “Although MicroStrategy is based in Virginia, Florida is where I live, vote, and have reported for jury duty, and it is at the center of my personal and family life.”

D.C. is also suing the business for allegedly colluding to assist him in evading taxes. Saylor led MicroStrategy as CEO up until this month.

In response, MicroStrategy said in a statement: “The District of Columbia’s claims against the company are false and we will defend aggressively against this overreach.”

According to the lawsuit, MicroStrategy knew that Saylor spent more than half the year living in Washington, D.C., making him a resident there legally. Nevertheless, the lawsuit claims that the corporation neglected to withhold and send D.C. taxes and that it filed incorrect tax returns with his Florida address.

The district’s case began with a whistleblower who, in accordance with the False Claims Act of Washington, D.C., filed a complaint in April 2021 under seal. “Demonstrating his disdain for the rules that everyone else has to live by, Saylor publicly flaunted his billionaire lifestyle while bragging to his friends and associates about how he was evading District taxes,” as reported by the whistleblower.

On Wednesday, MicroStrategy stock dropped 3.6% to $231.56. The stock’s loss this year has been similar to that of Bitcoin’s, falling around 57%.

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