Top Democrat Escalates Probe Into Pantera Founder Morehead's Taxes

Sen. Ron Wyden, the leading Democrat on the Senate Finance Committee, is intensifying his investigation into Dan Morehead, founder of Pantera Capital, regarding potential tax evasion associated with cryptocurrency capital gains. The inquiry focuses on Morehead's move to Puerto Rico, a territory where residents are exempt from paying income tax on capital gains. Wyden's investigation, which began in January, is centered on whether Morehead underreported taxes after overseeing a significant crypto sale worth $1 billion by Pantera Capital. In his communications, Wyden indicated that he has reason to believe Morehead's share of the proceeds amounted to hundreds of millions of dollars and expressed concerns regarding the accuracy of Morehead's tax reporting. While Wyden's probe is ongoing, it currently lacks the full authority of a formal investigation due to the Democrats' minority status in the Senate and the absence of support from Senate Finance Committee Chair Mike Crapo. This situation reflects broader concerns about tax regulation in the cryptocurrency industry, emphasized during a recent Senate hearing addressing cryptocurrency tax implications.

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