US Senator Ron Wyden, the top Democrat of the Senate Finance Committee, continues his investigation into whether Dan Morehead, the founder of the Asset Manager Panttera Capital, tried to avoid paying taxes through his move to Puerto Rico.
Wyden’s probe to whether Morehead committed tax evasion began in January, and is focused on how Pantera founder reported taxes on his share of revenue after a large crypto sale of the company. According to a press release, Wyden specifically looks at whether Morehead “incorrectly represents[ed] His residence status “When Pantera generated over $ 1 billion in capital gains by crypto sales by demanding that his profits from the sale came while he was in Puerto Rico. Residents of the US territory do not pay income tax on capital gains.
“That’s my understanding of your share of these winnings … were hundreds of millions of dollars,” Wyden said in the letter, sent on Wednesday. “It is also my understanding that you treated the whole [gain] As exempt from US treasure, even though the brother party of these gains accrued while still living in California. These are serious accusations of potential abuse of Puerto Rico tax incentives to avoid payment of US taxes that you need to address immediately. “
Wyden’s letter claimed that Morehead’s lawyers “have all disappeared” despite the fact that he was originally involved in his staff. He also said in the letter that he believes Morehead was advised by Jeffrey Rubinger, a Miami-based lawyer who advised another client who recently pleaded guilty to a tax fraud scheme “tied to the same Puerto Rico tax rules.
A spokesman for Pantera referred Coindesk to a previous statement from Morehead when he told The New York Times in a statement earlier this year, “I think I acted appropriately with regard to my taxes.”
Wyden’s probe does not carry the full weight of an investigation from the Senate Finance Committee at the moment, as Democrats are the minority party in the Senate and committee chairman Mike Crapo – the top republic of the committee – does not appear to have joined the investigation at this time.
Wyden’s letter came the same day as the Senate Finance Committee specifically held a hearing on crypto -tax issues. Witnesses during the hearing warned that the IRS may soon face a river of tax reporting.
Read more: US Senate Hearing on Crypto Taxes reveals Headaches to both industry and IRS
