Tax Evasion: Man Admits to Hiding IDR218 Billion Worth of CryptoPunks Sales

Jakarta, Pintu News – A man from Pennsylvania, United States, admitted his actions in a tax evasion case related to the sale of CryptoPunks Non-Fungible Token (NFT) digital assets. The man named Waylon Wilcox reportedly hid more than $13 million or around IDR218.3 billion (exchange rate 1 USD = IDR16,794) of income from the CryptoPunks transactions he made during 2021 to 2022.

Wilcox, aged 45, entered his plea in federal court on April 9, 2025. In his statement, he admitted to making 97 CryptoPunks sales transactions but did not report them on his tax returns. As a result of his actions, he could potentially face up to six years in prison.

Mode of Tax Evasion Through NFT Sales

According to court records, Wilcox sold 62 CryptoPunks NFTs in 2021 with total revenue reaching $7.4 million or around IDR 124.2 billion. Meanwhile, in 2022, he again sold 35 CryptoPunks NFTs and earned around $4.9 million or the equivalent of IDR 82.2 billion. However, in his tax report, Wilcox lists that he did not make any digital asset transactions.

The United States tax authority or Internal Revenue Service (IRS) considers that these actions made Wilcox successfully avoid tax obligations of $2.18 million or around IDR 36.6 billion in 2021 and $1.09 million or around IDR 18.3 billion in 2022. This practice is clearly detrimental to the country and violates federal law regarding tax obligations on cryptocurrency and NFT transactions.

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CryptoPunks NFTs and Their Value Development

CryptoPunks is one of the most famous NFT collections in the cryptocurrency world. The collection consists of 10,000 characters of algorithmically generated pixel art. At its peak in August 2021, the base price of a single CryptoPunks NFT could reach 125 Ethereum or nearly $479,000, which is equivalent to around IDR 8 billion.

However, as the hype in the NFT market dies down, the value of CryptoPunks has also seen a significant drop. Based on the latest data, the base price of this collectible currently stands at around 42.49 ETH or nearly $69,000, equivalent to Rp1.1 billion. This means that its value has dropped by about 85.7% from its previous price peak.

Tax Regulation and Oversight of Crypto and NFTs

The Wilcox case is an important warning for crypto and NFT market players not to ignore tax obligations. The United States tax authorities emphasize that every transaction of buying and selling NFTs or cryptocurrencies must be reported in the annual tax report. This includes the calculation of profits and losses from each transaction.

According to Yury Kruty, special agent of the Philadelphia IRS, the agency is committed to uncovering complex financial schemes that use cryptocurrencies and NFTs to hide taxable income. He also emphasized that all parties must play by the rules to maintain fairness in the tax system.

Penalties and Impact of the Case

Wilcox now faces a maximum sentence of six years in prison, a period of parole, and a fine in accordance with the provisions of federal law in the United States. This case is also seen as a reflection of the authorities’ increasing scrutiny of cryptocurrency-based economic activity, especially in terms of tax reporting.

The prosecution reminded that every transaction of buying and selling NFTs such as CryptoPunks must be reported in the tax report, and the profits made from the transaction must be taxed accordingly. This reinforces the realization that investment in the crypto and NFT sector is not exempt from tax obligations.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Jason Nelson / Decrypt. Man Pleads Guilty to Filing False Tax Returns, Hiding $13M in CryptoPunks Sales. Accessed April 15, 2025.
• Featured Image: Blockworks