NFT Trader Faces Prison Time for Hidden CryptoPunk Profits

A Pennsylvania man, Waylon Wilcox, has pleaded guilty to concealing substantial profits from his trading of CryptoPunks NFTs. He will likely face a prison sentence of up to six years and hefty fines for underreporting nearly $13 million in gains from 2021 and 2022 tax filings. This admission follows allegations that he intentionally omitted these transactions on his returns, claiming no digital asset activity. Wilcox’s evasion resulted in an estimated $3.2 million in unpaid taxes.