A Non-Fungible token (NFT) Trader Could Face Up To Six Years in Prison After Postading Guilty to Underreporting Nearly $ 13 Million in Profits from Trading Cryptopanes, Accord to The Us Attorney’s Office for the Middle District of Pennsylvania.

45 -year -old Waylon Wilcox confessed to submitting false tax declarations for tax years in the years 2021 and 2022. The former investor Cryptopunk pleaded guilty on April 9 to two cases of submitting false individual declaration of income tax, say federal prosecutors in the press of April 11 release.

In April 2022, Wilcox submitted a false individual income tax bar for the 2021 tax year, which did not submit income tax by about $ 8.5 million and reduced the tax due by about $ 2.1 million.

In October 2023, Wilcox made another false refund from tax income for the financial year of 2022, without reporting income tax by $ 4.6 million and reducing the tax due by almost $ 1.1 million.

“The total maximum penalty based on federal law for these crimes is up to six years imprisonment, the period of supervised exemption after prison and a fine”, in accordance with the statement. However, the exact details and time of his sentence remain unclear.

Related: NFT Trader sells Cryptopunk after a year for almost USD 10 million

The trader bought and sold 97 pieces of the Cryptopunk NFT collection, the largest NFT collection in the industry, with market capitalization of $ 687 million.

In 2021, Wilcox sold 62 Cryptopunk NFTS for a profit of around $ 7.4 million, but reported much less taxes. In 2022, he sold 35 more cryptop from $ 4.9 million. The Department of Justice said that Wilcox deliberately chose “no” when he asked if he was involved in digital asset transactions on both acts.

“IRS criminal investigation undertakes to solve complex financial programs covering virtual currencies and NFT transactions designed to hide taxable income,” said Special Agent Philadelphia Field Office, adding ::

“In today’s economic environment, it is more important than ever that Americans feel sure that everyone is playing according to the rules and pay taxes that are guilty.”

The case was examined by the Internal Revenue Service (IRS) and the Investigative Department.

Related: I will retreat with “unfounded” allegations in the field of allegations in the USA

Cryptographic tax rules gain adhesion

Cryptographic tax regulations attracted interest around the world in June 2024 after IRS has issued up-to-date cryptocurrency regulations Maintaining us cryptocurrency transactions subject to the tax requirements of the third parties for the first time.

From January, centralized cryptographic exchanges (CEX) and other brokers are required to report sales and digital assets, including cryptocurrencies.

On April 10, US President Donald Trump signed a joint congress resolution to overthrow the provisions from the time of Biden administration, which would require decentralized financial protocols (DEFI) to report IRS transactions.

It is assumed that in 2027 the so -called IRS DEFI broker rule would expand the existing reporting requirements of the Tax Office to include DEFI platforms, requiring them to disclose gross revenues from the sale of cryptocurrencies, including information regarding taxpayers involved in transactions.

However, some cryptocurrency regulatory advisors believe that the legislation of Banking Stablecoin and Crypto Banking should be a priority above the up-to-date tax regulations in the USA.

The “adjustable regulatory approach” for areas, including provisions on securities and removing “obstacles in banking”, is a priority for American legislators with a “greater advantage” for the industry, Mattan Erder, general legal advisor in decentralized orba of the layer block networks, said Cointelegraph.

https://www.youtube.com/watch?v=3Deyenench-2is

Warehouse: Referring Sec at cryptography leaves key questions unanswered