U.S. Senator Ron Wyden, the ranking Democrat on the Senate Finance Committee, has publicly accused Dan Morehead, founder of crypto asset manager Pantera Capital, of refusing to cooperate with an investigation into alleged tax avoidance exceeding $100 million. In a letter published on October 2, 2025, Wyden claims that Morehead misrepresented his residency status by moving to Puerto Rico and abused a territorial tax program to avoid U.S. taxes on capital gains.
The investigation, which began in January 2025, focuses on a large crypto sale by Pantera Capital that generated over $1 billion in capital gains shortly after Morehead's relocation. Wyden alleges that Morehead's personal share was hundreds of millions of dollars, and he treated the entire gain as tax-exempt, despite the majority accruing while he still resided in California. The senator noted that Morehead's attorneys initially indicated willingness to cooperate but have since all but disappeared, heightening concerns.
Wyden has set a deadline of October 15 for Morehead to respond, though compliance is uncertain. The probe also implicates advisor Jeffrey Rubinger, who allegedly provided similar wrongful advice in a prior tax fraud case. This inquiry occurs amid broader Senate hearings on crypto tax issues, though it lacks full committee support due to Democratic minority status.
