- Dan Morehead, founder of Pantera Capital, is under Senate investigation for potential tax law breaches after moving to Puerto Rico.
- The Senate Finance Committee’s scrutiny could set new precedents for tax compliance in the cryptocurrency industry.
The founder of Pantera Capital, Dan Morehead is in legal trouble. He is under investigation as to whether he breached tax laws after migrating to Puerto Rico, a well known tax haven. According to the New York Times report the authorities have issued a letter demanding his crypto transactions detail.
Puerto Rico is considered a tax haven for individuals seeking several tax advantages. Act 60 in Puerto Rico provides significant tax benefits on the capital gain income.
Dan Morehead, Founder and Managing Partner of Pantera Capital also a renowned figure in the crypto sphere moved to Puerto Rico and sold significant shares in his company. This raised concerns over the founder’s tax adherence.
The Senate Inquiry For Tax Violation
As per the letter released by the Senate Finance Committee, Morehead sold a massive amount of shares after shifting to Puerto Rico. From this, he earned over $1 billion in capital gains.
The Committee has demanded for all the information reading these trade activities and the information about his tax advisor. Additionally, the letter demands a list of all assets traded while he was in Puerto Rico, including cryptocurrencies.
In response, Morehead stated that he was relocated to Puerto Rico in 2021 and he followed all the tax laws. Moreover, if he is found to have violated tax laws, he could face severe penalties and legal actions.
The Senate Finance Committee’s investigation on Morehead indicates the advanced government scrutiny over crypto leaders who use offshore tax advantages. Through these investigations the committee aims to stop individuals in the crypto industry from avoiding taxes.
This Morehead case, having risen as quite different from the average regulatory issues, might become crucial as to how crypto executives should handle their taxes in the future. Probably this case might lead to new laws regarding the enforcement of offshore tax strategies.
Highlighted Crypto News Today:
Michigan Joins Growing List of States Moving Toward Crypto Reserves
