Dan Morehead, founder and managing partner of Pantera Capital, is under investigation for possible violations of U.S. tax laws after relocating to Puerto Rico, a territory known for its tax advantages.
The U.S. Senate Finance Committee (SFC) has requested information on more than $850 million in investment profits that Morehead earned since moving there in 2020, suspecting that he may have treated these gains as exempt from federal taxes.
A letter dated Jan. 9 from Senator Ron Wyden, as reported by The New York Times, suggests that Morehead may have improperly applied tax breaks designed for Puerto Rican residents, allowing him to bypass U.S. tax obligations. The investigation is part of a broader effort to examine wealthy individuals who have relocated to Puerto Rico and may have misused tax incentives.
The letter highlights that, in many cases, substantial portions of the income in question originate from the U.S. and should still be subject to federal taxation.
Morehead, who stated that he moved to Puerto Rico in 2021, has denied any wrongdoing, insisting that he acted appropriately regarding his tax obligations. As the founder of the first cryptocurrency fund in the U.S., he has overseen Pantera Capital’s exponential growth, with the firm’s early investments reportedly increasing by more than 130,000%.
His Pantera Bitcoin Fund, launched in 2013, saw its initial Bitcoin purchases at just $74, generating returns over 1,000 times the original investment.
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