Senate Finance Committee Ranking Member Ron Wyden (D-OR) has accused Pantera Capital founder Dan Morehead of refusing to cooperate with an investigation into potential tax evasion amounting to over $100 million in U.S. taxes. The allegations stem from claims that Morehead misrepresented his residency status and abused a Puerto Rican tax program to avoid paying taxes.
According to a letter published by the United States Senate Committee on Finance, Wyden claims that Morehead has failed to respond to attempts made by committee investigators since early January. Initially, Morehead’s attorneys indicated his willingness to cooperate with the investigation, but have since gone silent.
Wyden alleges that Pantera Capital sold a large position generating capital gains in excess of $1 billion shortly after Morehead moved to Puerto Rico and obtained a tax grant. The senator asserts that Morehead may have treated these gains as exempt from U.S. tax, despite the majority accruing while he still resided in California.
Further complicating the situation, Wyden claims that Morehead was advised on the transaction by Jeffrey Rubinger, who allegedly provided wrongful advice to another client, Suresh Gajwani, regarding tax exemptions for gains accrued prior to becoming a Puerto Rican resident.
Wyden has requested a prompt response from Morehead by October 15, but it remains uncertain whether the crypto billionaire will comply with the senator’s demands. The ongoing investigation highlights the potential complexities and controversies surrounding tax avoidance strategies in the cryptocurrency industry.
The post “Pantera Capital Founder Dan Morehead Refusing To Cooperate In Tax Avoidance Probe, Senator Claims” emphasizes the importance of transparency and accountability in financial dealings, particularly within the rapidly evolving landscape of digital assets. As the investigation unfolds, stakeholders in the crypto community will be closely monitoring the outcomes and implications for regulatory compliance and tax enforcement.