Key Takeaways:
- NFT trader Waylon Wilcox pleaded guilty to underreporting $13M in profits from CryptoPunk sales in 2021 and 2022.
- He falsely claimed he hadn’t engaged in digital asset transactions and reduced his tax liability by over $3M.
- Wilcox now faces up to six years in prison, supervised release, and fines under federal law.
Waylon Wilcox, a 45-year-old NFT trader, is facing up to six years in prison after pleading guilty to underreporting nearly $13 million in profits from the sale of CryptoPunk NFTs.
According to the U.S. Attorney’s Office for the Middle District of Pennsylvania, Wilcox filed false tax returns for 2021 and 2022.
Pennsylvania man pleads guilty to flipping more than $13M of digital art from infamous NFT collection — and reporting zilch to IRS https://t.co/Bwg1yvJzSQ pic.twitter.com/wBVzFsGb69
— New York Post (@nypost) April 12, 2025
In 2021, he failed to report around $8.5 million in income, reducing his tax bill by $2.1 million.
In 2022, he underreported an additional $4.6 million, avoiding about $1.1 million in taxes.
Wilcox’s NFT activity involved 97 CryptoPunks—62 sold in 2021 and 35 in 2022—earning him a total of $12.3 million in profit.
CryptoPunks are among the most valuable NFT collections, with a market cap of roughly $687 million.
Despite these sales, Wilcox falsely claimed on his tax returns that he had not engaged in digital asset trading.
The IRS Criminal Investigation Division led the probe.
Special Agent Yury Kruty stressed their commitment to exposing digital financial crimes and ensuring tax compliance.
Sentencing has yet to be finalized, but Wilcox faces prison time, supervised release, and substantial fines under federal law.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on:
This post was originally published on this site be sure to check out more of their content
