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Bitcoin Maximalist, Michael Saylor went on for more than ten years without paying taxes and is booked under a tax fraud lawsuit.
The District of Columbia has filed a tax fraud lawsuit against Bitcoin maximalist Michael Saylor. Saylor lived in the District of Columbia for almost ten years without paying any income taxes, according to Karl Racine, the district’s attorney general. One of the most ardent Bitcoin proponents is Michael Saylor. In the event that Saylor is found guilty in the lawsuit, experts fear that Bitcoin may reach new lows. Additionally, Saylor asserted that Bitcoin would hit $1 million.
One of the most ardent Bitcoin proponents is Michael Saylor. He referred to Bitcoin as the single commodity and all other cryptocurrencies, including Ethereum, as securities. He works with MicroStrategy, one of the biggest Bitcoin holders. MicroStrategy possesses more Bitcoin than any other publicly traded corporation, according to River Financial. More than 131,000 BTC have been acquired by it. When Tesla sold its Bitcoin holdings for cash in the second quarter, MicroStrategy was buying it. MicroStrategy invested more than $4 billion in buying Bitcoin under Saylor’s direction.
Saylor is accused of evading income taxes in Washington by claiming to live in a state with lower taxes, either Florida or Virginia, while having lived in the nation’s capital for more than ten years, according to the lawsuit against him and MicroStrategy. According to the lawsuit, Saylor boasted to close friends about his scheme.
Saylor’s tax avoidance, however, reportedly totals more than $25 million, according to the DC attorney general. Also named as a defendant in the complaint is MicroStrategy. The lawsuit claims that MicroStrategy knew that Saylor resided in DC but chose not to disclose this information. According to the lawsuit, “the corporation represented to the Internal Revenue Service on form W-2s for taxable years 2014 through 2021 that Defendant Saylor’s address was that of his house in Florida rather than his genuine place of habitation.”
Saylor, who resigned as CEO this month but is still the executive chair, has grown to be a key player in the cryptocurrency industry and frequently speaks about bitcoin. The case against MicroStrategy and Saylor, in the opinion of a prominent crypto influencer named CryptoGodJohn, is bad news for cryptocurrency and Bitcoin. He predicts that Bitcoin will experience some difficulty. In a statement, MicroStrategy claimed that Saylor was involved in a “personal tax situation” and that the business did not “oversee his own tax obligations.”
Saylor and MicroStrategy are being pursued by the attorney general’s office in an effort to recoup unpaid income taxes as well as penalties, which they claim could total more than $100 million. The lawsuit against Saylor is the first one filed in DC as a result of a recently established law that rewards whistleblowers who expose instances of tax evasion with a portion of any money that is ultimately recovered by the court. The bill also makes it possible for the court to impose “treble damages,” which punish tax evaders by fining them three times as much as they should have paid in taxes.
The District of Columbia’s lawsuit against Saylor has offended many in the crypto community. Many think the legal action against him is a component of the government’s campaign against cryptocurrency. They connect Saylor’s case to the US Treasury’s penalties against Tornado Cash. They also think that the Central Bank Digital Currency is an attempt by the government to increase financial oversight.
Thursday’s U.S. premarket saw a 2.5% decline in the price of MicroStrategy stock. And at least one analyst in the digital asset sector is afraid that Saylor’s recent price drops in cryptocurrency could be made worse by the legal pressures placed on him as a so-called Bitcoin whale. Marcus Sotiriou, an analyst at digital asset trader GlobalBlock, noted in a note that “new anxiety sets in about Michael Saylor, and his company MicroStrategy, being prosecuted for tax evasion.” Since MicroStrategy is one of the largest Bitcoin holders, cryptocurrency investors started to worry that Michael Saylor could have to sell some Bitcoin to cover the ensuing fines.