American Man Confronts Jail Sentence For Failing To Reveal $13m Of Crypto Punks NFT Transactions
A man from Pennsylvania in the US is facing a potential sentence of up to six years confinement after admitting to submitting inaccurate tax returns to the Internal Revenue Service (IRS) that concealed millions in income from the sale of Crypto Punks NFTs.
On April 9 in federal court, Waylon Wilcox, aged 45, acknowledged underreporting more than $13 million in earnings from 97 Crypto Punks transactions conducted between 2021 and 2022.
GUY MADE $13M FLIPPING PIXELATED NFTS—TOLD THE IRS “LOL, NEVER HEARD OF CRYPTO”
Waylon Wilcox, 45, hailing from Pennsylvania, confessed to omitting over $13 million in earnings from flipping 97 CryptoPunks NFTs—reporting nothing to the IRS for 2021 and 2022.
But when tax season arrived?… pic.twitter.com/RJACf8z6IU
— Mario Nawfal (@MarioNawfal) April 12, 2025
Wilcox Was A Punks Whale Who Liquidated 62 NFTs At Their Peak
Wilcox reduced his tax obligation by underreporting over $13m in Crypto Punks sales, evading more than $3.2 million, as per the US Attorney’s Office for the Middle District of Pennsylvania.
As detailed in court documents, Wilcox sold 62 Punks in 2021 for $7.4 million. He subsequently sold 35 more in 2022 for approximately $4.9 million.
Prosecutors claim these false statements permitted him to evade $2.18 million in taxes for 2021 and $1.09 million in 2022. Nevertheless, Wilcox reportedly checked the ‘no’ option when questioned on his 2021 and 2022 tax returns about whether he had sold any digital assets.
According to the press release, prosecutors noted the falsehoods facilitated the evasion of $2.18 million in taxes in 2021 and $1.09 million in 2022.
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Yury Kruty, Special Agent in Charge of the Philadelphia Field Office stated in the press release, “IRS Criminal Investigation is dedicated to untangling intricate financial schemes involving virtual currencies and NFT transactions intended to hide taxable income.”
They further expressed, “In the current economic landscape, it is crucial for the American populace to feel assured that everyone adheres to the regulations and pays the taxes they owe.”
The Pennsylvania Attorney’s Office cautioned that individuals selling an DIGITAL COLLECTIBLE are obligated to report sale revenues and any gains or losses from the asset’s sale on their tax return.
Wilcox faces a maximum sentence of six years in prison for the accusations against him. He is also likely to receive a period of supervised release and a monetary fine under federal law.
Crypto Punks Down Over 85% From Their Peak As Wilcox Sold At The Height
Despite the looming prison term and substantial fine, Waylon Wilcox sold his Crypto Punks during their peak period throughout 2021 and 2022.
Currently, they have a floor price of 42.49 ETH (approximately $69,000), while at their peak in August 2021, the floor price reached 125 ETH (valued at nearly $479,000 at that moment), according to CoinGecko.
In terms of ETH, Punks have decreased 66% from their high. However, in USD, the collection has plummeted 85.7% from that all-time top. Just last week, a holder sold their rare alien Punk for $6 million, incurring a $10 million (500 Ethereum) rekt on the transaction.
CryptoPunks represent an NFT collection of 10,000 algorithmically created pixel characters. They are regarded as prestigious due to being one of the first collections to launch.
Punks were among the most desirable collections during the DIGITAL COLLECTIBLE boom in 2021 and 2022. At that time, NFT trading volume peaked at $2.4 billion daily.
Nevertheless, the trading volume has significantly decreased, aside from a few spikes during intense periods. According to CoinGecko, total sales in the past 24 hours only amount to $4.9 million.
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Pennsylvania Man Underreported Over $13m CryptoPunks NON-FUNGIBLE TOKEN Sales to the IRS
- Waylon Wilcox could face up to 6 years in prison for checking ‘no’ when questioned about the disposal of any digital assets
- The individual sold 97 Punks between 2021 and 2022, evading more than $3.2m in tax by failing to disclose
- Crypto Punks have dropped over 85% against USD since reaching their all-time high in August 2021
The article American Man Faces Prison Time For Not Disclosing $13m Of Crypto Punks NON-FUNGIBLE TOKEN Sales was first published on 99Bitcoins.
