A certain NFT trader faces up to six years in prison for tax fraud due to concealing a profit of 13 million US dollars

According to Cointelegraph, based on information from the U.S. Attorney's Office for the Middle District of Pennsylvania, an NFT trader has pleaded guilty to underreporting nearly $13 million in profits from CryptoPunks trades and could face up to six years in prison.

On April 11, federal prosecutors stated that Waylon Wilcox admitted to submitting false personal income tax returns for the tax years 2021 and 2022. The former CryptoPunks investor pleaded guilty on April 9 to two charges of submitting false personal income tax returns.

As early as April 2022, Wilcox submitted a false personal income tax return for the 2021 tax year, underreporting about $8.5 million in income and underpaying taxes by approximately $2.1 million. In October 2023, Wilcox submitted another false return for the fiscal year of 2022, underreporting pre-tax income by about $4.6 million and underpaying taxes by nearly $1.1 million.