Emre Yumlu 
Pantera Capital founder Dan Morehead is under federal tax investigation after moving to the tax haven of Puerto Rico.
Pantera Capital Founder Faces Tax Investigation
On January 9, the U.S. Senate Finance Committee (SFC) sent a letter to Dan Morehead requesting information regarding the $850 million in investment profits he earned after relocating to Puerto Rico in 2020.
According to a letter from Senator Ron Wyden, seen by The New York Times, Morehead may have classified these profits as exempt from U.S. taxes.
The SFC is investigating whether wealthy Americans have improperly used Puerto Rico’s tax incentives to avoid paying U.S. taxes on income earned outside the island.
The letter states: “In most cases, the majority of the gain is actually U.S. source income, reportable on U.S. tax returns, and subject to U.S. tax.”
In response, Morehead stated, “I believe I acted appropriately with respect to my taxes,” adding that he moved to Puerto Rico in 2021.
Pantera Capital and Crypto Investments
Founded by Morehead, Pantera Capital is recognized as the first cryptocurrency fund in the U.S. In a blog post dated November 26, 2024, he claimed that the firm’s initial investments had grown by more than 130,000%.
Morehead launched the Pantera Bitcoin Fund in July 2013, purchasing Bitcoin at $74 per coin, and stated that the investment has since yielded returns exceeding 1,000 times the initial purchase price. He also noted that, at the time, only 1% of global financial wealth had exposure to Bitcoin.
Currently, Pantera Capital manages over $5 billion in assets. According to its website, the firm has invested in over 100 ventures, with 47% of its capital allocated outside the U.S.
Crypto Taxation Under Regulatory Scrutiny
The investigation into Morehead comes amid increased regulatory scrutiny of cryptocurrency taxation. In June 2024, the Internal Revenue Service (IRS) introduced a new rule requiring third-party tax reporting for crypto transactions.
Starting in 2025, centralized crypto exchanges (CEXs) and other brokers will be required to report the sales and exchanges of digital assets. However, this move could push investors toward decentralized platforms, complicating tax enforcement.
In response, the Blockchain Association filed a lawsuit against the IRS in December 2024, arguing that including decentralized exchanges under the “broker” classification is unconstitutional and unlawfully extends data collection requirements.
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