A Dillsburg, PA man has pleaded guilty to filing false federal income tax returns that concealed more than $13 million in earnings from the sale of digital artwork. The defendant, 45-year-old Waylon Wilcox, entered the plea in federal court on April 9, 2025, acknowledging that he deliberately underreported income from sales of non-fungible tokens (NFTs), digital art primarily from the CryptoPunks collection, across two tax years.
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According to court documents, Wilcox submitted a false return in April 2022 for the 2021 tax year, failing to report over $8.5 million in income and avoiding more than $2.1 million in taxes. A similar false return was filed in October 2023 for the 2022 tax year, omitting nearly $4.6 million in income and reducing his tax liability by over $1 million. These funds were generated from the sale of 97 digital art pieces known as “Punks,” unique digital assets recorded on a blockchain, which were bought and sold for significant sums.
CryptoPunks are a well-known series of NFTs, with each piece featuring unique traits and verifiable ownership on a decentralized ledger. Wilcox sold approximately 62 of these assets in 2021, generating over $7.4 million, and 35 more in 2022, totaling nearly $4.9 million in sales. Despite these transactions, he falsely indicated on his tax forms that he had not dealt in virtual currency or digital assets in either year.
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Federal law requires taxpayers to report proceeds and gains from NFT sales. Wilcox’s filings not only failed to disclose these transactions but also included incorrect responses to questions specifically addressing virtual currency and digital asset activity. His case was investigated by the IRS Criminal Investigation unit, which continues to pursue cases involving financial misconduct in the digital asset space.
Wilcox now faces a potential sentence of up to six years in federal prison, supervised release, and monetary fines. Sentencing will be determined by the court following federal guidelines.
Article by multiple RFHC contributors, based upon information from the U.S. Attorney’s Office for the Middle District of Pennsylvania
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