CryptoPunks Seller Faces the IRS Music After Hiding $13M in Sales

If you thought your taxes were rough this year, wait until you meet Waylon Wilcox. In an unfortunate turn of events, he didn’t report to Uncle Sam with $13 million in CryptoPunks sales under his hoodie.

Yep. The Pennsylvania man just pleaded guilty to filing bogus tax returns after raking in major profits from selling CryptoPunks, one of the OG NFT collections that practically printed money during the 2021 bull run.

🧾 The Taxman Cometh (with Receipts)

Here’s the TL;DR:

• Wilcox sold 97 CryptoPunks in 2021 and 2022.
• Total haul? Over $13 million.
• Taxes owed? A spicy $3.2 million.
• Taxes actually paid? Zilch. Nada. Goose egg.

Instead of reporting the sales, Wilcox simply ticked “No” when asked if he had disposed of any digital assets on his tax forms. Classic move… until the IRS showed up with a calculator and a vengeance.

Read Also: This Cryptopunk Got Sold at a $10M Loss

💰 How Much Did He Make (and Hide)?

According to court docs:

• In 2021, he flipped 62 CryptoPunks for $7.4 million.
• In 2022, he sold another 35 for nearly $4.9 million.
• Meanwhile, Wilcox told the IRS he didn’t sell any digital assets.

That’s like dumping a Lamborghini and telling your insurance you still take the bus.

As a result, Wilcox dodged:

• $2.18 million in taxes in 2021
• $1.09 million in 2022

Not exactly subtle. The feds were not amused.

👀 What Even Are CryptoPunks Again?

For the uninitiated: CryptoPunks are a collection of 10,000 pixelated NFT avatars that basically became the Mona Lisas of the blockchain during NFT mania.

Back in August 2021, a single Punk could sell for 125 ETH (around $479,000 at the time). Today? Floor price is down to 42.49 ETH (~$69K). Still impressive, but a far cry from the days of easy six-figure flips.

Case in point: Just last week, someone sold a CryptoPunk for $6 million… and took a $10 million loss. Pain.

⚖️ What Happens Next?

Wilcox is now staring down the barrel of:

• Up to 6 years in prison
• A hefty federal fine
• A slap from the IRS that’ll echo through crypto Twitter

The U.S. Attorney’s Office and IRS made it very clear: selling NFTs like CryptoPunks means you must report those gains. No exceptions. No pixelated get-out-of-jail-free cards.

“It’s more important than ever that the American people feel confident that everyone is playing by the rules,” said IRS Special Agent Yury Kruty.

Translation: Don’t play hide-and-seek with your NFT profits, the IRS has entered the chat.