TLDR:
- Waylon Wilcox (45) pleaded guilty to filing false tax returns that concealed $13+ million in CryptoPunks NFT sales
- He sold 97 CryptoPunks NFTs between 2021-2022, evading $3.2 million in taxes
- On tax forms, he falsely claimed he hadn’t disposed of any digital assets
- The Pennsylvania man faces up to six years in prison
- IRS officials emphasized that NFT sales must be reported on tax returns
A Pennsylvania man has admitted to hiding millions in profits from CryptoPunks NFT sales, facing potential prison time for tax evasion. Waylon Wilcox, 45, from Dillsburg, Pennsylvania, pleaded guilty on April 9, 2025, to filing false tax returns that concealed over $13 million in income.
According to court documents, Wilcox sold 97 CryptoPunks NFTs between 2021 and 2022. He made approximately $7.4 million from selling 62 CryptoPunks in 2021 and another $4.9 million from 35 CryptoPunks in 2022.
Despite these substantial profits, Wilcox checked “no” when asked on his tax returns whether he had disposed of any digital assets. This deception allowed him to underreport his income by about $8.5 million for 2021 and $4.6 million for 2022.
The tax evasion reduced his tax bill by more than $3.2 million – approximately $2.18 million in 2021 and $1.09 million in 2022. The case was investigated by the Internal Revenue Service’s Criminal Investigation unit.
Market Context
CryptoPunks remain one of the most recognized NFT collections in the crypto space. Created as a collection of 10,000 algorithmically generated pixel characters, they saw peak popularity during the digital collectibles boom of 2021-2022.
At their height in August 2021, CryptoPunks had a floor price of 125 ETH, worth almost $479,000 at the time. Today, that floor price has dropped to around 42.49 ETH, or approximately $69,000.
This represents an 85.7% decline from the all-time high in dollar terms. The market has seen some large transactions recently, including one CryptoPunk that sold for $6 million last week, though that sale represented a $10 million loss for the seller.
Legal Implications
The U.S. Attorney’s Office for the Middle District of Pennsylvania emphasized that NFT sales must be reported on tax returns. When taxpayers sell NFTs, they must report both the proceeds and any gains or losses from the transactions.
“IRS Criminal Investigation is committed to unraveling complex financial schemes involving virtual currencies and non-fungible token transactions designed to conceal taxable income,” said Yury Kruty, Special Agent in Charge of the Philadelphia Field Office.
Kruty added, “In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe.”
Wilcox appeared before Senior United States District Judge Malachy E. Mannion and pleaded guilty to a two-count criminal information charging him with filing false individual income tax returns.
The charges against Wilcox carry serious consequences. Under federal law, he faces a maximum penalty of up to six years in prison, a term of supervised release following imprisonment, and additional fines.
Assistant U.S. Attorney David C. Williams is prosecuting the case, which highlights increasing scrutiny of cryptocurrency and NFT transactions by tax authorities.
The case serves as a reminder to crypto investors that digital asset sales, including NFTs, are subject to tax reporting requirements. Failure to properly report such transactions can lead to serious criminal charges.
Wilcox’s sentencing will be determined by the judge after consideration of federal sentencing statutes and guidelines. The court has not yet announced a date for the sentencing hearing.
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