- The filing names the Chief Executive Officer of Strategy, Phong Le, and the Chief Financial Officer, Andrew Kang, as litigants.
- Strategy replied to the filing and said that it has plans to vigorously defend itself against the claims of Hamza.
Michael Saylor’s Strategy and its officials are accused by a California-based investor of breaching federal securities laws by making false and misleading statements. The complaint was filed in the U.S. District Court for the Eastern District of Virginia on Friday.
Anas Hamza accused Strategy and its officials, including the co-founder of the firm, had not disclosing that the anticipated profitability of the firm’s Bitcoin-aimed investment strategy was exaggerated.
The complaint also claimed that the Tysons, a Virginia-based company, hadn’t disclosed the magnitude of losses that Strategy could identify on the worth of its digital assets after its adoption of fair-value accounting standards for Bitcoin at the time of announcing rosy assessments of Strategy’s performance as a Bitcoin treasury company.
The lawsuit filed by Hamza is being directed by lawyers at Pomerantz. The filing names the Chief Executive Officer of Strategy, Phong Le, and the Chief Financial Officer, Andrew Kang, as litigants.
The Vigorous Defense
The firm replied to the filing and said that it has plans to vigorously defend itself against the claims of Hamza. Strategy also added that it could not foresee the outcome or give a reasonable estimate of the costs linked with the legal attempt at this time.
Strategy first started accumulating Bitcoin in 2020, under the leadership of Michael Saylor. In the current times, it holds around 576,00 Bitcoin, worth an estimated $60.6 billion, as per the current prices.
In January 2025, the firm started tracking its Bitcoin holdings at fair value, having gains and losses reported as quarterly income. At the beginning of April, Strategy alerted that it was not expecting a profitable first quarter, quoting a $5.91 billion fall in the value of its Bitcoin holdings, on paper, at the time of the three-month period.
After some time, the firm revealed a first-quarter loss of $4.22 billion, or $16.49 per share. The decision of the Strategy to continuously highlight the major performance indicators, consisting of BTC Yield, is one of the ways that the company and officials allegedly minimized the risks of shifting to a fair-value accounting standard for its BTC holdings.
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