A York County man allegedly failed to report gains from selling cryptocurrency on his individual income tax returns, according to the United States Attorney’s Office for the Middle District of Pennsylvania.

Waylon Wilcox, 45, of Dillsburg has been charged with filing false individual income tax returns, a news release states.

Acting U.S. Attorney John C. Gurganus alleges that Wilcox engaged in a complex cryptocurrency scheme. He sold his shares for more than $7,402,935 in 2021 and $4,899,180 in 2022 and failed to report the gains from the sale on his individual income tax returns, the release states.

Wilcox underreported his income for both tax years and reduced what he owed, Gurganus alleges.

In tax year 2021, Wilcox underreported his income by approximately $8,511,238, which reduced the tax owed by about $2,180,453, the United States Attorney’s Office alleges.

In tax year 2022, Wilcox underreported his income by approximately $4,599,532, which reduced the tax owed by about $1,098,623, the United States Attorney’s Office alleges.

“IRS Criminal Investigation is committed to unraveling complex financial schemes involving virtual currencies and non-fungible token (NFT) transactions designed to conceal taxable income,” Philadelphia Field Office Special Agent in Charge Yury Kruty said in the news release. “In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe.”

The Internal Revenue Service, Criminal Investigation, investigated the case, the release states. Assistant U.S. Attorney David C. Williams is the prosecutor.