First Major Penalty Imposed Due to Popular Crypto Project in the USA: May Face Imprisonment! - Coin Bulletin

Waylon Wilcox, who lives in the US, admitted to evading about $3.3 million in taxes by not reporting the income he earned from the sale of CryptoPunks NFTs worth millions of dollars to the IRS.

One of the most popular NFT projects in the cryptocurrency world, CryptoPunks, has for the first time become the subject of a major tax evasion case. Waylon Wilcox, a 45-year-old resident of Dillsburg, Pennsylvania, made a total of 97 CryptoPunk sales in 2021 and 2022. Wilcox, who earned over 13 million dollars from these sales, admitted to evading his tax obligation by not reporting his income to the IRS.

According to a statement by the U.S. Attorney's Office for the Middle District of Pennsylvania, this case is the first serious investigation into large-scale tax evasion from NFT sales in the country. According to U.S. tax obligations, gains from the sale of cryptocurrencies or NFTs are considered capital gains and are subject to taxation.

According to an interesting detail provided by the local press, Wilcox's girlfriend has asked for financial support on Facebook for her daughter's beauty pageants. This detail has led to comments on social media that Wilcox is actually going through a financially difficult process.

In a statement made by officials, IRS Special Agent Yury Kruty:

"The IRS is determined to crack down on complex financial schemes that hide taxable income from virtual currencies and NFT transactions. It is especially important to reassure the American public that everyone is following the rules and paying their taxes in full, particularly in today's economic environment."

Wilcox's confession of guilt occurred shortly before the April 15 tax filing deadline. Wilcox, who faces up to six years in prison in the case, is expected to receive a lighter sentence due to his admission of guilt.

Although the NFT sector peaked during the period when CryptoPunk sales were taking place, a serious decline in trading volumes is observed these days.

The creator of the CryptoPunks project, also known for the Bored Ape Yacht Club NFT collection, Yuga Labs, launched a side project called Super Punk World last year but withdrew from the project due to the reactions received. The company's CEO Greg Solano stated that they would keep CryptoPunks decentralized and would only provide support to some museums and institutions.