Cryptopunk Whale pleads guilty to concealing revenue to the U.S. Tax Service; faces up to six years in prison

A cryptopunk NFT trader has pleaded guilty to concealing his earnings. On the 13th (local time), The Block reported that a 45-year-old NFT trader from Pennsylvania had pleaded guilty to concealing his earnings.
CryptoPunk pleaded guilty to tax evasion for failing to report NFT sales proceeds to the Internal Revenue Service (IRS). He faces up to six years in prison and by pleading guilty,
According to reports, Waylon Wilcox, a Dillsburg resident, sold 97 Cryptopunks in 2021 and 2022, racking up $1,300 in damages.
It was revealed that he made more than $1.2 million in 2018, but avoided paying about $3.3 million in taxes by failing to report his earnings on tax returns. The case marks the first major NFT-related tax evasion case in the United States.
The case has been highlighted as an example of how the IRS has been forced to accept virtual assets for sale or transfer, as the conviction came just before the April 15 deadline for most U.S. taxpayers to file their 2024 income taxes.
The IRS emphasizes that any gains or losses must be reported under the tax code.
"IRS Criminal Investigation is vigorously investigating complex financial crimes that exploit cryptocurrency and NFT transactions to hide taxable income," Kruty said in a press release.
"In the current economic environment, confidence that the American people are paying their fair share of taxes is more important than ever."
Wilcox faces up to six years in prison, but due to his guilty plea, he will only be sentenced to six years in prison.
The sentence may be reduced.