Catenaa, Saturday, February 22, 2025 – Dan Morehead, founder of Pantera Capital, is facing a federal tax investigation over his use of Puerto Rico’s tax incentives, with authorities examining whether he improperly claimed exemptions on $850 million in investment profits.
The US Senate Finance Committee is probing whether Morehead classified these gains as tax-exempt despite laws requiring US-sourced income to be reported. A Jan. 9 letter from Sen. Ron Wyden, reviewed by The New York Times, questioned the legitimacy of these claims.
Morehead defended his tax filings, stating, “I believe I acted appropriately.”
He also clarified that he moved to Puerto Rico in 2021, not 2020 as initially suggested.
Pantera Capital, founded in 2013, was the first cryptocurrency investment fund in the US.
The firm has reported exponential growth, managing over $5 billion in assets.
The investigation comes amid heightened regulatory scrutiny on cryptocurrency tax compliance. In June 2024, the IRS introduced new rules requiring brokers to report cryptocurrency transactions, which will take effect in 2025. Industry groups, including the Blockchain Association, have challenged these regulations, warning they could push investors toward decentralized platforms.
As federal authorities tighten oversight of crypto taxation, Morehead’s case could set a precedent for other high-net-worth individuals benefiting from Puerto Rico’s tax policies.
