Senator Criticizes Dan Morehead Over Tax Evasion Investigation
Senator Ron Wyden, the leading Democrat on the Senate Finance Committee, has criticized Dan Morehead, the founder of Pantera Capital, for allegedly evading cooperation in a significant investigation regarding a suspected tax evasion scheme involving Puerto Rico, a hotspot for cryptocurrency operations. This inquiry, which Wyden initiated in January, seeks to examine the financial practices of some of America’s wealthiest individuals who may have exploited Puerto Rican residency for advantageous tax benefits.
Concerns Over Lack of Engagement
In a strongly worded letter released this week, Wyden expressed his frustrations with Morehead’s lack of engagement with the Senate’s scrutiny of his financial dealings, stating that while Morehead’s legal representatives suggested initial willingness to assist, their response has since dwindled.
“I am increasingly alarmed that you may have sidestepped over $100 million in federal taxes on capital gains accumulated while you were still a resident of San Francisco,”
Wyden wrote.
Potential Misuse of Tax Incentives
The senator pointed out that Morehead might have received erroneous tax advice that facilitated his Puerto Rican residency shortly before a substantial financial windfall from selling a significant stake in Pantera. He emphasized that under Puerto Rican tax legislation, new residents are obligated to cover U.S. taxes on capital gains transactions for a decade after relocating to the island.
Call to Address Serious Accusations
Wyden’s letter urged Morehead to address these serious accusations of potential exploitation of Puerto Rican tax incentives, which could lead to significant tax evasion implications. As of now, Morehead has not provided a statement to Decrypt regarding the senator’s claims.
Pantera Capital’s Growth and Investments
Morehead’s Pantera Capital, which has grown significantly amid favorable regulatory conditions promoted by the Trump administration, is at the forefront of investing extensively in cryptocurrency ventures. Their projects include hundreds of millions directed towards new digital asset treasury firms thriving this year, and an ambitious $1.25 billion initiative aimed at transforming a publicly traded neurotechnology firm into a major Solana treasury. Recently, Helius Medical Technologies, originally focused on enhancing treatments for neurological disorders, underwent a corporate rebranding to Solana Company, with its website features related to research and technology now inactive.
