NFT Seller Pleads Guilty in $13M Fraud Case: CryptoPunk Tax Flunk
A Pennsylvania man has admitted to concealing over $13 million in NFT sales from tax authorities and could face up to six years in prison.
Waylon Wilcox, 45, pleaded guilty to filing false individual income tax returns for the years 2022 and 2023, as reported by the Department of Justice and Fortune. The DOJ alleges that he sold 97 NFTs from the CryptoPunks collection between 2021 and 2022, generating over $13 million in proceeds that he did not report to the IRS.
By failing to report these sales, Wilcox allegedly reduced his tax liability by $3.2 million over the two-year period.
Wilcox’s lawyers have not commented on the case so far.
The case highlights the importance of proper cryptocurrency tax reporting, especially during a time when the IRS is providing temporary relief for crypto holders using centralized exchanges.
In 2021, Wilcox sold 62 CryptoPunks for over $7.4 million during the NFT boom, followed by 35 more Punks for nearly $5 million in 2022 as the market cooled off. CryptoPunks, created in 2017, is a valuable NFT collection with pieces selling for millions.
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