An american citizen has admitted to evading millions in taxes after failing to report profits from a massive NFT sale, marking what appears to be the first high-profile U.S. tax evasion case in the sector.
Waylon Wilcox pleaded guilty after federal prosecutors revealed he had earned over $13 million from selling 97 CryptoPunk NFTs across 2021 and 2022.
Instead of reporting the profits to the IRS, Wilcox allegedly concealed the income, dodging roughly $3.3 million in tax obligations. The plea comes just ahead of the federal tax filing deadline.
Under U.S. tax law, gains from digital assets like NFTs or cryptocurrencies must be declared, and any resulting profit is subject to capital gains tax.
Wilcox’s actions violated these requirements, with the IRS emphasizing its commitment to cracking down on financial misconduct involving virtual assets.
Yury Kruty, a top IRS official, described the case as an example of the agency’s efforts to hold all taxpayers accountable—especially in the evolving world of digital finance.
In a separate twist, local reports noted that Wilcox’s girlfriend had at one point sought donations on Facebook for beauty pageant expenses, seemingly unaware of his hidden NFT fortune.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/american-pleads-guilty-in-first-major-nft-tax-evasion-case/