Kash Patel accused of violating STOCK Act over delayed crypto-related investment disclosure
WASHINGTON, DC: FBI Director Kash Patel is facing fresh scrutiny after it emerged that he disclosed a six-figure investment in cryptocurrency-focused company MicroStrategy months after the deadline required under federal law.
The delayed filing has raised questions about compliance with the Stop Trading on Congressional Knowledge (STOCK) Act, though the FBI says the omission was corrected once it was discovered.
The disclosure came to light after Patel filed an amended financial report on May 26, more than six months after purchasing the stock. The investment has also drawn attention because MicroStrategy has received millions of dollars in government contracts through the Department of Justice and other federal agencies.
Kash Patel reportedly purchased between $100K and $250K worth of MicroStrategy stock in November
According to a report by NOTUS, Patel purchased between $100,001 and $250,000 worth of MicroStrategy stock on November 21.
Federal law requires officials to report stock transactions exceeding $1,000 within 45 days under the STOCK Act. However, Patel did not disclose the purchase until May 26, more than 180 days after the transaction.
In a letter sent to the Office of Government Ethics, Patel acknowledged that he had "inadvertently omitted" the stock purchase from an earlier disclosure filing.
The FBI said the omission was corrected after it was identified.
"Once the mistake was discovered," the bureau said in a statement to NOTUS, Patel filed an amended disclosure report, which was later approved by a Department of Justice ethics official.
Neither the FBI nor the Justice Department immediately responded to a request for comment from the Daily Beast.
MicroStrategy's government ties draw attention
Patel's investment has attracted additional attention because of MicroStrategy's relationship with the federal government.
The company, which describes itself as a "bitcoin treasury company," says its goal is to "strategically accumulate bitcoin and advocate for its role as digital capital."
It has received millions of dollars in contracts over the years from the Department of Justice, which oversees the FBI, as well as from the Department of Health and Human Services, the Defense Department and the State Department.
The company is led by Michael Saylor, who has been described as a longtime friend of Eric Trump and an ally of President Donald Trump in the cryptocurrency space.
Since Patel purchased the shares last year, MicroStrategy's stock has lost roughly half of its value.
Deputy Assistant AG William Taylor says Kash Patel remains in compliance
Deputy Assistant Attorney General William Taylor defended Patel in a letter sent to the Office of Government Ethics on May 28.
Taylor wrote that Patel's stock purchase had been left off his original filing because of "a miscommunication" and argued that the investment does not create a conflict of interest with Patel's responsibilities as FBI director.
"I continue to believe that Director Patel is in compliance with applicable laws and regulations governing conflicts of interest," Taylor wrote.
Notably, Patel's own letter did not mention a miscommunication, stating only that the transaction had been "inadvertently omitted."
The delayed disclosure has once again highlighted reporting requirements under the STOCK Act, which requires senior government officials to promptly disclose certain financial transactions.
According to NOTUS, more than 30 members of Congress also filed STOCK Act disclosures after the required deadline over the past year.
