JUST IN: MicroStrategy and Michael Saylor hit by lawsuit for tax evasion
- Bitcoin’s largest publicly traded holder MicroStrategy was slapped by a lawsuit for tax evasion.
- Attorney General Karl Racine announced legal action against the billionaire tech executive, citing tax fraud.
- MicroStrategy and Michael Saylor’s next move could influence Bitcoin price trend since the tech firm is the largest public holder of the asset.
D.C. Attorney General Karl Racine announced legal action against MicroStrategy and Michael Saylor for alleged tax evasion. Bitcoin’s largest public whale has run into legal trouble for tax fraud allegations in Washington DC.
Also read: Jim Cramer urges traders to sell their crypto and wash hands off of speculative assets
Michael Saylor and MicroStrategy face lawsuit for tax fraud allegations
MicroStrategy, a software intelligence firm and one of Bitcoin’s largest whales is contending with legal trouble. D.C. Attorney General Karl Racine announced that MicroStrategy and Michael Saylor are facing legal action for alleged tax fraud. DA Racine revealed that Michael Saylor, a billionaire tech executive who lived in the District for more than a decade never paid any DC income taxes.
Saylor’s company MicroStrategy is hit by a lawsuit for conspiring to help him evade taxes. DA Racine argues that Saylor owes hundreds of millions of dollars he earned while living in Washington DC. The lawsuit is the first of its kind brought under DC’s recently amended False Claims Act encouraging whistleblowers to report residents who evade our tax laws by misrepresenting their residence.
NEW: Today, we’re suing Michael Saylor - a billionaire tech executive who has lived in the District for more than a decade but has never paid any DC income taxes - for tax fraud.
— AG Karl A. Racine (@AGKarlRacine) August 31, 2022
Why this matters for Bitcoin holders?
The outcome of the lawsuit against MicroStrategy could have an impact on Bitcoin price for two key reasons. Since MicroStrategy holds 129,699 BTC, the outcome of the lawsuit could influence the firm’s holdings- the giant could either shed Bitcoin or HODL. Michael Saylor recently moved from CEO to Chairman, to shift his focus to acquisition of Bitcoin for the firm. MicroStrategy could continue scooping up more BTC during the decline in the asset’s price.
Bitcoin price sustained above the $20,000 level, a key psychological barrier for the asset. It remains to be seen whether further developments in the lawsuit against MicroStrategy influence BTC price negatively.
Analysts at FXStreet observed that Bitcoin price is currently recovering from its losses. BTC is ready to target the $22,500 level, despite a bearish macroeconomic outlook.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
