Senate Accuses Pantera Capital Founder of $1B Tax Evasion

Generated by AI AgentCoin World
Friday, Feb 14, 2025 9:45 pm ET1min read
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The US Senate has accused Pantera Capital founder Dan Morehead of cashing out over $1 billion without properly paying taxes. According to a letter released by the Senate Finance Committee, Morehead sold "a large amount of shares" after moving to Puerto Rico, receiving "over $1 billion" in capital gains. The committee has asked Morehead to share information related to these trades, including the name of his tax advisor. The letter also requests that he provide a list of all assets he sold during his residency in Puerto Rico, including cryptocurrency.

In a statement, Morehead said he moved to Puerto Rico in 2021 and believes he has taken appropriate tax actions. A spokesperson for Democratic Senator Ron Wyden of Oregon, who chairs the Senate Finance Committee, said the investigation is still ongoing and declined further comment.

The investigation comes as the Senate Finance Committee is looking into whether Morehead violated federal tax law after relocating to the tax haven of Puerto Rico. Morehead's move to Puerto Rico in 2021 raised eyebrows among tax experts, who noted that the island territory has a favorable tax regime for wealthy individuals.

Pantera Capital is a venture capital firm that invests in cryptocurrency and blockchain technology. Morehead founded the firm in 2003 and has since become a prominent figure in the cryptocurrency industry. The firm has invested in several high-profile cryptocurrency projects, including Bitcoin and Ethereum.

The investigation into Morehead's tax affairs is part of a broader effort by the Senate Finance Committee to crack down on tax evasion by wealthy individuals. The committee has been conducting a series of investigations into tax avoidance strategies used by the wealthy, including the use of offshore accounts and trusts.

The outcome of the investigation into Morehead's tax affairs remains to be seen. However, the accusations have raised questions about the tax practices of wealthy individuals in the cryptocurrency industry and the need for greater transparency and accountability.