CryptoPunk Trader Faces Prison After Hiding $13M in NFT Profits from IRS
A Pennsylvania man who made millions flipping CryptoPunks NFTs is now facing prison time after admitting he misled the IRS about his earnings.
The man known as Waylon Wilcox reportedly failed to disclose nearly $13 million in profits made over two years of NFT trading.
Prosecutors say he knowingly filed false tax returns for both 2021 and 2022, significantly understating his income and dodging over $3 million in taxes combined.
In both filings, he denied engaging in any digital asset transactions despite making substantial gains from selling 97 CryptoPunk NFTs.
READ MORE: Is Bitcoin Quietly Positioning Itself to Replace the U.S. Dollar?
Authorities revealed that Wilcox reduced his 2021 tax bill by more than $2 million by underreporting roughly $8.5 million in income. He repeated the offense in 2022, hiding another $4.6 million and avoiding more than $1 million in taxes.
Wilcox pleaded guilty to two felony counts related to tax fraud and now faces up to six years behind bars, along with possible fines and supervised release. The exact sentence will be determined at a later date.
Federal investigators, led by the IRS’s criminal division, called the case part of a broader crackdown on hidden crypto wealth.
As NFT markets grow, officials stress that crypto profits are subject to the same rules as traditional income—and failure to report them won’t go unnoticed.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
