A man is accused of filing false tax returns related to the$ 13 million in cryptopunk sales.

After pleading guilty to filing fake tax returns that hid millions of dollars in profits of CryptoPunks, a man from Pennsylvania could face up to six years in prison.

Waylon Wilcox, 45, admitted in federal judge on April 9 that he had underreported more than$ 13 million in earnings from 97 CryptoPunk transactions that occurred between 2021 and 2022. &nbsp,

His tax bill was reduced by more than$ 3.2 million as a result of the unreported gains, according to the Middle District of Pennsylvania’s U.S. Attorney.

During the modern items craze in 2021 and 2022, CryptoPunks, an NFT series of 10,000 automatically generated color heroes, was one of the most popular choices. &nbsp,

Although they currently have a floor price of 42.49 ETH ( roughly$ 69, 000 ), they sold for a minimum of 125 ETH ( which was almost$ 479, 000 at the time ), according to CoinGecko, at their peak in August 2021.

Dollarally speaking, the collection is down 85.7 % from that record-setting high. A CryptoPunks holder just sold their NFT for$ 6 million, resulting in a$ 10 million loss.

According to court papers, Wilcox sold 62 Punks for$ 7.4 million in 2021 and 35 for virtually$ 4.9 million in 2022.

However, Wilcox allegedly checked “no” when asked on both years ‘ tax returns whether he had disposed of any digital assets.

He was allegedly able to avoid paying$ 2.18 million in fees in 2021 and$ 1.09 million in 2022 as a result of his false representations, according to the prosecution.

Yury Kruty, Philadelphia Field Office Special Agent in Charge, stated in a statement that” IRS Criminal Investigation is committed to unraveling complex financial methods involving digital currencies and non-fungible sign purchases designed to suppress taxable income. &nbsp,

It’s more important than ever that the American people feel assured that everyone is adhering to the rules and paying the taxes they owe in today’s financial environment.

The Attorney’s Office advised that taxpayers who sell NFTs has file the sales revenues and any gains or losses from the sales on their tax returns.

According to federal law, Wilcox faces a maximum sentence of up to six years in prison, a word of controlled release, and a good.

edited by Sebastian Sinclair ,