FBI Director Kash Patel missed deadline to disclose major MSTR purchase

FBI Director Kash Patel has disclosed a previously unreported purchase of between $100,001 and $250,000 in Strategy stock months after the legal filing deadline, prompting renewed scrutiny over compliance with federal ethics rules.

According to a report by nonpartisan news outlet NOTUS, Patel purchased the shares of Strategy (MSTR), the largest publicly traded corporate holder of bitcoin, on Nov. 21 but did not disclose the transaction until May 26. 

The filing was submitted well beyond the 45-day reporting deadline required under the Stop Trading on Congressional Knowledge (STOCK) Act for executive branch officials reporting stock trades exceeding $1,000.

In an explanation provided to the U.S. Office of Government Ethics, Patel said the omission was inadvertent and resulted from an unspecified “miscommunication.” The disclosure was later amended and approved, while a Department of Justice official told NOTUS that Patel has not been penalized over the late filing.

Delayed filing draws ethics criticism

Under the STOCK Act, senior government officials must publicly report qualifying stock transactions within 45 days to improve transparency and reduce potential conflicts of interest. Although a first-time violation generally carries a $200 civil penalty, no such fine has been imposed in Patel’s case, according to an FBI official cited by NOTUS.

Government watchdogs nevertheless questioned the delay. Dylan Hedtler-Gaudette of the Project on Government Oversight told the publication the missed deadline amounted to a violation of the law and renewed calls for Congress to prohibit federal officials from trading individual stocks.

A May 28 letter from Deputy Assistant Attorney General William Taylor reached a different conclusion, stating that Patel’s purchase did not create a conflict of interest.

“I continue to believe that Director Patel is in compliance with applicable laws and regulations governing conflicts of interest,” Taylor said.

Strategy’s bitcoin business adds to scrutiny

Attention has centered on the transaction because Strategy has built its corporate identity around accumulating bitcoin. 

The company describes itself as a “Bitcoin Treasury Company” and has acquired 847,363 BTC since adopting its bitcoin strategy in 2020, with the holdings valued at more than $50 billion at current prices.

NOTUS also reported that Strategy has conducted millions of dollars in business with the Justice Department over the years.

Strategy’s shares have fallen by roughly half since Patel’s November purchase, although the company remains one of the largest institutional bitcoin investment vehicles in public markets. 

The FBI, in the meantime, has continued to investigate cryptocurrency-related fraud, particularly investment scams, and Patel has previously praised the bureau’s enforcement record in the digital asset sector.

The disclosure adds to a series of recent ethics filings involving senior U.S. officials and cryptocurrency exposure. Earlier this year, President Donald Trump’s certified annual financial disclosure showed more than $1.4 billion in crypto-related income during 2025, while April filings from Federal Reserve Chair nominee Kevin Warsh revealed venture fund investments across more than 20 blockchain companies, both of which have renewed debate over financial interests and potential conflicts involving public officials.