DOJ Closes CrowdStrike Probe Into $32 Million Carahsoft Deal for the IRS Without Charges

U.S. prosecutors have closed an investigation into CRWD without bringing criminal or civil action, with the closure reported on September 25, 2026. According to the reporting, Justice Department lawyers told the involved parties in July 2026 that no action would be brought.

The probe centered on a $32 million transaction with Carahsoft Technology Corp., a government technology distributor, involving cybersecurity software for the Internal Revenue Service. CrowdStrike closed the deal on the last day of a fiscal quarter in 2023, and some staff raised concerns at the time because they viewed the transaction as incomplete and it was unclear whether the tax agency would ultimately make the purchase. Carahsoft paid on time, but the IRS did not purchase or receive the products.

At issue was revenue recognition: whether the Carahsoft deal was complete when booked. CEO George Kurtz highlighted the transaction on an earnings call, and its size could have determined whether CrowdStrike met or missed Wall Street projections for two key metrics that quarter. CrowdStrike has said the concerns were baseless and that the deal underwent extensive review.

What to watch: the status of a parallel SEC investigation remains unclear, per CrowdStrike's latest SEC filing. Any update in the company's next filings would indicate whether the regulatory overhang tied to this deal is fully resolved.