A US man from Pennsylvania is going through as much as six years in jail after pleading responsible to submitting false tax returns to the Inland Income Service (IRS) that hid tens of millions of {dollars} in earnings from gross sales of Crypto Punks NFTs.
In federal court docket on April 9, Waylon Wilcox, 45, admitted to underreporting over $13 million in earnings from 97 Crypto Punks transactions between 2021 and 2022.
GUY MADE $13M FLIPPING PIXELATED NFTS—TOLD THE IRS “LOL, NEVER HEARD OF CRYPTO”
Waylon Wilcox, 45, of Pennsylvania, pleaded responsible to hiding over $13 million in earnings from flipping 97 CryptoPunks NFTs—reporting nothing to the IRS in 2021 and 2022.
However when tax time got here?… pic.twitter.com/RJACf8z6IU
— Mario Nawfal (@MarioNawfal) April 12, 2025
Wilcox Was A Punks Whale Who Offered 62 NFTs At Their Peak
Wilcox diminished his tax invoice by underreporting greater than $13m in Crypto Punks gross sales by over $3.2 million, in keeping with the US Lawyer’s Workplace for the Center District of Pennsylvania.
In keeping with court filings, Wilcox offered 62 Punks in 2021 for $7.4 million. The Pennsylvania man then offered 35 extra in 2022 for round $4.9 million.
Prosecutors say the misrepresentations allowed him to dodge $2.18 million in taxes in 2021 and $1.09 million in 2022. Nonetheless, Wilcox allegedly checked the’ no’ field when requested on his 2021 and 2022 tax returns whether or not he had disposed of any digital belongings.
Per the press launch, prosecutors state the misrepresentations allowed him to dodge $2.18 million in taxes in 2021 and $1.09 million in 2022.
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“IRS Legal Investigation is dedicated to unraveling advanced monetary schemes involving digital currencies and non-fungible token transactions designed to hide taxable earnings,” Yury Kruty, Philadelphia Area Workplace Particular Agent in Cost, stated within the press launch.
They added, “In right this moment’s financial surroundings, it’s extra necessary than ever that the American individuals really feel assured that everybody is taking part in by the foundations and paying the taxes they owe.”
The Pennsylvania Lawyer’s Workplace warned that when a person sells an NFT, they have to report gross sales proceeds and any positive factors or losses from the asset’s sale on their tax return.
Wilcox faces a penalty of as much as six years in jail for the costs in opposition to him. He may also probably face a time period of supervised launch and a high-quality underneath federal legislation.
Crypto Punks Down Over 85% From The Prime As Wilcox Offered The Prime
Though he faces jail time and a hefty high-quality, Waylon Wilcox offered his Crypto Punks throughout their peak throughout 2021 and 2022.
Right now they’ve a flooring worth of 42.49 ETH (round $69,000), at their top in August 2021, the ground worth was 125 ETH (value virtually $479,000 on the time), per CoinGecko.
In ETH phrases, Punks are down 66% from the highest. Nonetheless, in opposition to USD, the gathering is down 85.7% from that all-time excessive. Simply final week, a CryptoPunks holder offered their super-rare alien Punk for $6 million, taking a $10 million (500 ETH) loss on the commerce.
CryptoPunks are an NFT assortment of 10,000 algorithmically generated pixel characters. They maintain status as a result of they’re one of many earliest collections to launch.
Punks have been among the many most sought-after collections through the NFT craze in 2021 and 2022. Throughout that point, buying and selling quantity for NFTs reached as excessive as $2.4 billion every day.
Nonetheless, the amount has dried up, barring a couple of spikes amid frenzied intervals. Per CoinGecko, total gross sales prior to now 24 hours is simply $4.9 million.
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US man underreported over $13m CryptoPunks NFT gross sales to the IRS
- Waylon Wilcox faces as much as 6 years in jail for ticking ‘no’ when requested if he had disposed of any digital belongings
- The person offered 97 Punks between 2021 and 2022, dodging over $3.2m in tax by no disclosing
- Crypto Punks are down over 85% in opposition to USD since their all-time excessive in August 2021
The submit American Man Faces Jail Time For Not Disclosing $13m Of Crypto Punks NFT Gross sales appeared first on 99Bitcoins.
