Wyden, a leading Democrat, continues his tax investigation into Pantera founder Morehead

Sen. Ron Wyden, a top Democrat on the Senate Finance Committee, continues his investigation into whether assets manager Pantera Capital founder Dan Morehead attempted to avoid paying taxes through his move to Puerto Rico.

Wyden’s investigation into whether Morehead’s commitment to tax evasion began in January, focusing on how Pantera founders reported taxes on a percentage of revenues from the company after large crypto sales. According to a press release, Wyden is specifically considering whether Morehead is a “misrepresentation of residence (ed)” when Pantera generated more than $1 billion in capital gains from crypto sales by claiming that profits came from sales when he was in Puerto Rico. Residents of the US Territories do not pay income tax on capital gains.

“It was hundreds of millions of dollars that you understand your share of these profits,” Wyden said in a letter sent Wednesday. “It is also my understanding that you treated the whole thing as a US tax exemption, despite the majority of these benefits occurring while you were still living in California.

Wyden’s letter allegedly said Morehead’s lawyers “almost disappeared” despite initially being involved with his staff. He also said he believes Morehead was advised by Miami-based attorney Jeffrey Livinger to another client who advised another client tied to the same Puerto Rico tax rules.

A Pantera spokesman introduced Coindesk in a previous statement on Morehead. He told the New York Times earlier this year, “I believe I acted properly regarding taxes.”

Wyden’s investigation currently does not carry the full weight of the investigation by the Senate Finance Committee. Because Democrats, Senate president and committee chair Mike Krapo (the top Republican on the committee), appears to have not yet participated in the investigation at this time.

Wyden’s letter came on the same day the Senate Finance Committee specifically held a hearing on the issue of crypto taxes. Witnesses at the hearing warned that the IRS could soon face a major flood of tax reports.

Read more: US Senate Hearing on Crypto Tax reveals headaches for both industry and IRS