He grew from pixelated punks, and in the process he punctured the Internal Revenue Service.
The Pennsylvania man faces federal prison after pleading guilty to turning over $13 million in digital art from the infamous Cryptopunk NFT collection and will not report it to the IRS, prosecutors said.
Waylon Wilcox, 45, of Dillsburg, pleaded guilty on Tuesday to filing false tax returns in 2021 and 2022. Over the last two years, Wilcox has sold 97 crypto punks.
However, on his tax return he told the government he had never touched the code. We checked “No” in both years when asked about virtual asset income. The omission is said to be subject to over $3.2 million in outstanding taxes on the IRS.
cryptopunks, Created in 2017has become a breakout star in the NFT trends. At its peak, it sold for $11.8 million at Sotheby's in June 2021, winning Christie's $17 million a month ago. Even in recent months, two separate punks have been sold for $6.1 million and $2.33 million. According to nftpricefloor.com.
“If a taxpayer sells NFTs that contain punks, the taxpayer must report sales revenue and losses from the sale of NFTs on his tax return,” the Department of Justice said. press release Friday.
Wilcox, who filed a fake return from a quiet Cumberland County home, is currently facing a supervised release and a massive fine, in addition to being jailed for up to six years.
And another accessory, an orange jumpsuit courtesy of the Fed.
It is not immediately clear when he will be sentenced, according to a review of his court records.
