Dan Morehead, founder and managing associate of Pantera Capital, is below investigation for potential violations of U.S. tax legal guidelines after relocating to Puerto Rico, a territory recognized for its tax benefits.
The U.S. Senate Finance Committee (SFC) has requested info on greater than $850 million in funding earnings that Morehead earned since transferring there in 2020, suspecting that he could have handled these positive factors as exempt from federal taxes.
A letter dated Jan. 9 from Senator Ron Wyden, as reported by The New York Instances, means that Morehead could have improperly utilized tax breaks designed for Puerto Rican residents, permitting him to bypass U.S. tax obligations. The investigation is a part of a broader effort to look at rich people who’ve relocated to Puerto Rico and will have misused tax incentives.
The letter highlights that, in lots of instances, substantial parts of the revenue in query originate from the U.S. and may nonetheless be topic to federal taxation.
Morehead, who said that he moved to Puerto Rico in 2021, has denied any wrongdoing, insisting that he acted appropriately relating to his tax obligations. Because the founding father of the primary cryptocurrency fund within the U.S., he has overseen Pantera Capital’s exponential development, with the agency’s early investments reportedly growing by greater than 130,000%.
His Pantera Bitcoin Fund, launched in 2013, noticed its preliminary Bitcoin purchases at simply $74, producing returns over 1,000 occasions the unique funding.
