Millions from CryptoPunks, But “No Gains”? Man Admits to Tax Fraud, Faces Prison Time

Question

He thought no one would notice — but they did. Waylon Wilcox (45) from Pennsylvania made millions selling CryptoPunks NFTs during the digital collectibles boom, yet claimed in his tax returns that he never sold any digital assets. Now, he’s facing up to six years behind bars.

💸 Over $13 Million Hidden — $3 Million in Taxes Dodged According to the U.S. Attorney’s Office, Wilcox has admitted to failing to report over $13 million in NFT-related income from 97 transactions in 2021 and 2022. This allowed him to avoid paying more than $3.2 million in taxes.

Shockingly, he ticked “No” when asked on both of his tax returns whether he had disposed of any digital assets. In reality, he sold 62 CryptoPunks for $7.4 million in 2021, and 35 more in 2022 for nearly $4.9 million.

🧠 CryptoPunks: From Hype to Decline CryptoPunks were once among the most sought-after NFT collections. In August 2021, the floor price reached a staggering 125 ETH (nearly $479,000) per piece. Today? According to CoinGecko, the current floor price is about 42.5 ETH (roughly $69,000) — an 85% drop from its all-time high. Despite that, some still fetch millions. Just last week, one holder sold a CryptoPunk for $6 million, taking a $10 million loss.

⚖️ IRS: No One Is Above the Rules “Virtual currencies and NFTs are not beyond the reach of the law,” warned Yury Kruty, Acting Special Agent in Charge of IRS Criminal Investigation in Philadelphia.

The IRS is increasingly targeting complex schemes involving crypto and NFTs that aim to conceal taxable income. “Now more than ever, Americans need to know that everyone has to play by the rules and pay what they owe,” he added.

🛑 What Does the Law Say? The U.S. Attorney’s Office reminded the public that any NFT sale must be reported on tax returns. Whether it's a gain or a loss — income from digital assets is fully taxable.

🚨 What Does Wilcox Face? For filing false tax returns, Wilcox could face: 🔹 up to 6 years in prison

🔹 supervised release after sentencing

🔹 and a hefty fine under federal law

#nft , #CryptoFraud , #CryptoNewss , #Cryptolaw , #DigitalAssets Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“