Pennsylvania Man Guilty of Hiding Millions in CryptoPunk Profits

Hold onto your wallets, folks! A Pennsylvania dude just copped to federal charges for not spilling the beans on his massive NFT earnings. Talk about a crypto cover-up!

On April 11, the United States Attorney's Office for the Middle District of Pennsylvania dropped the bomb that 45-year-old Waylon Wilcox admitted to playing fast and loose with his tax returns for 2021 and 2022. He tried to sneak past the IRS, underreporting a whopping $13 million from his NFT flipping frenzy.

Guess what fueled this tax dodge? Yup, you got it—97 hot pieces from the legendary CryptoPunks collection!

Prosecutors are saying Wilcox pulled a fast one in April 2022, claiming way less income for 2021 than he actually raked in. This slick move shaved over $2.1 million off his tax bill. Not content with that, he tried it again in October 2023 for 2022, dodging another $1.1 million in taxes. Smooth, right?

All told, Wilcox underreported around $8.5 million in 2021 and another $4.6 million in 2022. And get this—he straight-up lied on both returns, saying "no" when asked if he'd been trading digital assets. Bold move, Wilcox.

Feds are alleging that Wilcox made about $7.4 million selling 62 CryptoPunks in 2021 and another $4.9 million from 35 Punk sales in 2022. That's some serious cash he was trying to keep under wraps!

The IRS and their Criminal Investigation Division were on this case like white on rice. And they're reminding everyone that NFT gains and losses are fair game on your taxable income, so don't even think about pulling a Wilcox.

Philadelphia Field Office Special Agent in Charge Yury Kruty isn't messing around. He said, "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." You hear that, crypto traders?

Wilcox could be looking at up to six years in the slammer, plus supervised release and fines. A judge will decide his fate based on federal sentencing rules. Stay tuned for that drama!

NFT Sales in Free Fall

And if you thought Wilcox's story was wild, buckle up because the NFT market is in a nosedive right now. Weekly sales volumes are tanking, with a 4.7% drop last week to just $94.7 million. That's down from $102.8 million the week before. Yikes!

It's not just the money—activity is plummeting too. NFT buyers and sellers are down over 75% each, and Q1 2025 trading volume is 24% lower than the last quarter, according to DappRadar. The market's on life support, folks.

Even the big shots like CryptoPunks are feeling the heat. Last week, CryptoPunk #3100—one of just nine Alien Punks—sold at a $10 million loss. And the collection's floor price? Down a staggering 67% since its 2021 peak. It's a bloodbath out there in NFT land!