FBI Director Kash Patel belatedly disclosed a six-figure purchase of MicroStrategy (MSTR) stock — a filing that has reignited questions about federal ethics rules and public officials’ exposure to crypto-linked companies.
What happened
- Patel bought between $100,001 and $250,000 of MicroStrategy shares on Nov. 21, according to a NOTUS report.
- The transaction was not reported until May 26, well after the 45-day reporting window required for executive-branch officials under the STOCK Act.
- Patel told the U.S. Office of Government Ethics the omission was “inadvertent” and due to a “miscommunication.” The filing was amended and approved; the Department of Justice says Patel has not been fined.
Why it matters
- The STOCK Act requires senior government officials to report stock trades over $1,000 within 45 days to promote transparency and limit conflicts of interest. First-time violations can carry a civil penalty (typically $200), though no penalty has been reported in this case.
- Government watchdogs pushed back. Dylan Hedtler-Gaudette of the Project on Government Oversight called the missed deadline a legal violation and reiterated calls for Congress to bar federal officials from trading individual stocks.
DOJ response and ethics review
- A May 28 letter from Deputy Assistant Attorney General William Taylor concluded that Patel’s purchase did not create a conflict of interest and said Patel remains in compliance with applicable laws and regulations governing conflicts of interest.
Why MicroStrategy draws attention
- MicroStrategy has become a high-profile institutional holder of bitcoin, describing itself as a “Bitcoin Treasury Company.” Since 2020 it has amassed roughly 847,363 BTC — holdings the report values at more than $50 billion at current prices.
- The company has also done “millions of dollars” in business with the Justice Department over the years, according to NOTUS.
- MicroStrategy’s stock is volatile: shares have fallen by about half since Patel’s November purchase, though the firm remains one of the largest public bitcoin-focused investment vehicles.
Bigger picture
- The disclosure lands amid heightened scrutiny of public officials’ crypto exposures. Earlier this year, President Donald Trump’s certified financial disclosure showed more than $1.4 billion in crypto-related income for 2025, and filings for Federal Reserve Chair nominee Kevin Warsh revealed venture stakes across more than 20 blockchain companies — developments that have intensified debate over financial interests and conflicts among senior officials.
- Meanwhile, the FBI continues to emphasize enforcement against crypto-related fraud. Patel himself has publicly praised the bureau’s record pursuing digital-asset crimes.
Bottom line: The late filing has been officially corrected and cleared by ethics reviewers, but watchdogs say it underscores continuing concerns over transparency and whether tighter rules — such as banning individual stock trades by federal officials — are needed as crypto becomes increasingly intertwined with public-sector dealings.
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