American risks 6 years in prison for concealing profits from CryptoPunks NFT sale
Date: 2025-04-15 Author: Henry Casey Categories: CRYPTO PAYMENTS
Waylon Wilcox, a U.S. citizen from Dillsburg, Pennsylvania, has pleaded guilty to concealing income from NFT transactions, which could result in up to six years in prison. According to the U.S. Department of Justice, Wilcox, 45, was the owner of a large portfolio of tokens from the CryptoPunks collection, one of the most recognizable projects in the world of non-fungible tokens, which peaked in popularity during the 2021 hype period.
The investigation found that Wilcox sold 97 tokens from his portfolio during 2021-2022, receiving about $13 million for them. However, the profits were not reported on his tax return, allowing him to avoid paying about $3.3 million in taxes. This behavior, according to prosecutors, constitutes willful tax evasion.
Federal authorities also noted that the transactions occurred at the height of the speculative interest in NFTs, when the market was reaching record highs. However, the digital collectibles sector has since seen a sharp decline in demand and prices.
Amid these changes, Wilcox recently made headlines again — this time for a loss. He sold the CryptoPunk token #3100 for 4,000 ETH (about $6 million), although he purchased it a year earlier for 4,500 ETH, which was then equivalent to $16 million. Thus, the loss on the transaction amounted to about $10 million.
Wilcox now faces not only financial penalties, but also criminal liability. The trial is ongoing, with prosecutors insisting that digital assets should be subject to the same tax laws as traditional financial instruments.
The case highlights the growing scrutiny of U.S. authorities on cryptocurrency and NFT transactions, especially when multimillion-dollar deals are involved and attempts to circumvent tax laws are underway.American risks 6 years in prison for concealing profits from CryptoPunks NFT sale
A Pennsylvania man has pleaded guilty to tax evasion after making millions in profits from selling digital collectibles.
Waylon Wilcox, a U.S. citizen from Dillsburg, Pennsylvania, has pleaded guilty to concealing income from NFT transactions, which could result in up to six years in prison. According to the U.S. Department of Justice, Wilcox, 45, was the owner of a large portfolio of tokens from the CryptoPunks collection, one of the most recognizable projects in the world of non-fungible tokens, which peaked in popularity during the 2021 hype period.
The investigation found that Wilcox sold 97 tokens from his portfolio during 2021-2022, receiving about $13 million for them. However, the profits were not reported on his tax return, allowing him to avoid paying about $3.3 million in taxes. This behavior, according to prosecutors, constitutes willful tax evasion.
Federal authorities also noted that the transactions occurred at the height of the speculative interest in NFTs, when the market was reaching record highs. However, the digital collectibles sector has since seen a sharp decline in demand and prices.
Amid these changes, Wilcox recently made headlines again — this time for a loss. He sold the CryptoPunk token #3100 for 4,000 ETH (about $6 million), although he purchased it a year earlier for 4,500 ETH, which was then equivalent to $16 million. Thus, the loss on the transaction amounted to about $10 million.
Wilcox now faces not only financial penalties, but also criminal liability. The trial is ongoing, with prosecutors insisting that digital assets should be subject to the same tax laws as traditional financial instruments.
The case highlights the growing scrutiny of U.S. authorities on cryptocurrency and NFT transactions, especially when multimillion-dollar deals are involved and attempts to circumvent tax laws are underway.
