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Senator Ron Wyden Accuses Pantera Founder of Dodging Federal Tax Bill

Key Takeaways

  • ​Senator Wyden accuses crypto investor Dan Morehead of dodging $100 million in taxes by moving to Puerto Rico before a major asset sale;
  • The inquiry focuses on whether wealthy Americans misuse Puerto Rico’s tax laws to lower their US tax obligations;
  • Wyden says Morehead’s legal team stopped cooperating and may have wrongly claimed tax exemptions under Puerto Rico residency rules.

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Senator Ron Wyden Accuses Pantera Founder of Dodging Federal Tax Bill

Chair of the Senate Finance Committee, Senator Ron Wyden, has accused Dan Morehead, founder of Pantera Capital, of evading federal taxes by relocating to Puerto Rico.

According to a letter sent on September 30, the investigation examines whether wealthy Americans are using Puerto Rico’s tax programs to cut down their US tax bills.

Wyden launched the review in January. He said Morehead’s lawyers first indicated they would work with his staff, but then stopped responding.

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Wyden wrote, “While your attorneys initially suggested to my staff you were willing to cooperate with this inquiry, they have all but disappeared".

He added that he is concerned Morehead may have avoided more than $100 million in federal taxes on capital gains that were earned while he was still living in San Francisco.

The senator’s letter indicated that Morehead might relocate to Puerto Rico just before making hundreds of millions of dollars from selling part of his stake in Pantera. According to Wyden, Morehead then claimed that the money was free of US taxes due to his new residency.

Wyden argued that the law requires new Puerto Rican residents to continue paying US taxes on gains for ten years after moving. He said:

These are serious allegations of potential abuse of Puerto Rico tax incentives to avoid the payment of US taxes that you must immediately address.

On October 1, the Senate Finance Committee held a hearing on cryptocurrency taxation. What was the hearing about? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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