Senate Investigates Pantera Capital Founder Dan Morehead Over $850M in Potential Tax Evasion

The U.S. Senate Finance Committee is investigating Dan Morehead, founder of Pantera Capital, for potentially evading taxes on $850 million in profits by improperly claiming tax exemptions after relocating to Puerto Rico. According to the letter from the Senate Finance Committee on January 9th, the probe centers on whether Morehead, a pioneer in cryptocurrency investment, wrongly applied Puerto Rico's Act 60 tax benefits to income that should have been subject to standard U.S. taxation. The investigation highlights increasing regulatory scrutiny of the cryptocurrency industry, especially concerning wealthy individuals utilizing Puerto Rico's tax system. Pantera Capital, managing over $5 billion in assets and reporting returns exceeding 130,000% on some investments, has placed Morehead in the spotlight amid broader regulatory changes, including new IRS reporting requirements for centralized exchanges starting in 2025.