A man in the United States became rich selling Crypto Punks, and he could face up to six years in prison for lying to the IRS about not understanding crypto.

If you concealed profits from reselling NFTs when filing personal income taxes in the United States in 2021 and 2022, you could face imprisonment, along with fines imposed by the IRS. A man named Waylon Wilcox in the U.S. admitted that he became wealthy by flipping (Flipping) Crypto Punk NFT, but falsely claimed on his personal income tax return that he had never dealt with crypto assets. When asked about virtual asset income, he always checked "no." This failure to report will result in him owing the IRS over $3.2 million in taxes, and besides paying fines, he will also go to prison.

This news was shared by the well-known influencer Mario Nawfal on X, who mocked the man by saying, "Told the IRS, LOL, Never heard of crypto."

Prosecutors said Friday that the man has admitted that he earned more than $13 million from the sale of Crypto Punks NFTs, but that he did not actively disclose the digital assets to the IRS, pretending not to understand cryptocurrencies, and if convicted, he faces up to six years in federal law, plus hefty fines and surveillance bail.

Waylon Wilcox, a 45-year-old man from Duisburg, admitted on Tuesday that he submitted false tax returns in 2021 and 2022, during which he sold a total of 97 CryptoPunks NFTs.

The Department of Justice's public press release warns taxpayers to declare NFT in accordance with the law.

The U.S. Department of Justice wrote in a press release on Friday: When taxpayers sell NFTs, they must report the sale amount and any gains or losses from the sale of the NFT on their tax return. The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Waylon Wilcox appeared in federal court on April 9, 2025, to face claims from U.S. Senior District Judge Malachy E. Mannion and pleaded guilty to both charges.

According to court documents and statements, Waylon Wilcox submitted a false 2021 personal income tax return on April 10, 2022, underreporting approximately $8,511,238 in income. On October 10, 2023, he again submitted a false 2022 personal income tax return, underreporting approximately $4,599,532 in income for the year 2022.

Waylon Wilcox has collected and sold a total of 97 CryptoPunks NFTs. When filing taxes, he denied having received any digital asset rewards or profits on the IRS form. The Justice Department stated that when taxpayers sell NFTs, they must report the sale amount as well as any gains or losses from the sale of the NFTs on their tax returns.

Special Agent Yury Kruty from the Philadelphia field office stated that the IRS Criminal Investigation Division is committed to uncovering complex financial schemes involving virtual currency and NFT transactions that conceal taxable income. In today's economic environment, it is more important than ever for the American people to believe that everyone should follow the rules and pay their fair share of taxes. This case is being investigated by the IRS Criminal Investigation Division. U.S. Assistant Attorney David C. Williams is prosecuting the case.

Under federal law, the maximum penalty for the crimes of false reporting and tax evasion is six years of imprisonment, along with supervised release after incarceration and substantial fines. The judge will impose a sentence on the man after considering the applicable federal sentencing statutes and guidelines.

Crypto Punks have fetched astronomical prices at both Sotheby's and Christie's auctions.

CryptoPunks became the most popular project in the NFT craze since its launch in 2017. At its peak, one NFT was sold for 11.8 million USD at a Sotheby's auction in June 2021, and nine NFTs were also sold for 17 million USD at a Christie's auction. According to the NFT Floor Price rankings, even though the NFT market has recently quieted down, the floor price of Crypto Punk NFTs remains at the top, significantly leading with 42.49 ETH compared to Board Ape's 14.74 ETH, with a market value of 687 million.

This article discusses how an American man became wealthy by selling Crypto Punks, and that the IRS could impose a maximum six-year prison sentence for lying about not understanding Crypto. It first appeared on Chain News ABMedia.