October 01,2025

Wyden Unveils Investigation of Crypto Billionaire’s Tax Scheme Involving Puerto Rico Residency Scam

Wyden Opened Investigation of Pantera Capital Founder Dan Morehead’s Tax Strategies with Private Inquiry in January; New Findings Indicate Morehead May Have Improperly Avoided More than $100 Million in Federal Taxes by Misrepresenting His Residency

Washington, D.C. – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., today unveiled an ongoing investigation into whether Dan Morehead, Pantera Capital founder and billionaire cryptocurrency investor, improperly avoided more than $100 million in U.S. taxes by misrepresenting his residency status and abusing a Puerto Rican tax program. Senator Wyden initiated the investigation with outreach to Morehead in early January, and Morehead has failed to respond to inquiries from committee investigators after his attorneys initially indicated a willingness to cooperate.

In a new letter sent on Tuesday, Senator Wyden questioned Morehead about his tax planning related to a transaction in excess of $1 billion, as well as the timeline of his residency in Puerto Rico.

“My staff received information indicating that shortly after you relocated to Puerto Rico and obtained a PR tax grant, Pantera Capital sold a large position and generated capital gains in excess of $1 billion,” Senator Wyden wrote. “It is my understanding your share of these gains … was hundreds of millions of dollars. It is also my understanding that you treated the entire [gain] as exempt from U.S. tax, even though the lion’s share of these gains accrued while you still resided in California. These are serious allegations of potential abuse of Puerto Rico tax incentives to avoid the payment of U.S. taxes that you must immediately address.”

In Tuesday’s letter, Senator Wyden also laid out findings related to a South Florida attorney who advised Morehead and other clients on tax strategies involving Puerto Rico residency.

“My investigators recently discovered that you were advised on this transaction by Jeffrey Rubinger, a Miami-based attorney who inaccurately advised a different client, Suresh Gajwani, that built-in gains accrued prior to becoming a resident of Puerto Rico could be exempt from federal taxes,” Senator Wyden wrote. “IRS personnel also indicated to Senate Finance Committee staff in a briefing that there were several ongoing investigations by IRS criminal agents and federal prosecutors involving situations where a taxpayer potentially misrepresented facts with respect to bona fide residency in Puerto Rico or sourcing of income on tax returns. In addition to the recent prosecution of Suresh Gajwani, my understanding is that federal prosecutors in South Florida are also conducting criminal investigations into attorneys who knowingly provided taxpayers inaccurate legal opinions advising them to treat U.S. source income as Puerto Rico source income.”

Senator Wyden’s letter to Morehead is available here. 

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