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NFT Flip Turns Felony
A former NFT trader known for flipping rare CryptoPunks just got hit with a six-year prison sentence. Why? Prosecutors say he used insider information and deception to pull off a $13 million scheme—one that eventually unraveled in court.
What started as digital flexing turned into a full-blown fraud case.
Here’s What Happened
The trader, whose online alias wasn’t disclosed in the court records, used confidential data to front-run major NFT sales. He allegedly bought NFTs before they were promoted by influencers or marketplaces—then flipped them for big profits.
Essentially, he gamed the system, knowing exactly what would pump before it pumped.
Authorities also found that he falsified statements and ran shadow wallets to hide the gains. His big wins? Mostly CryptoPunks and other blue-chip NFTs. The total haul: over $13 million.
Judge Didn’t Buy the Hype
Despite the defense arguing that NFTs were a “new and misunderstood space,” the judge wasn’t having it. The sentence was clear: six years in federal prison, plus forfeiture of all illicit gains.
The message? Trading JPEGs doesn’t mean you’re above the law.
NFT Market Under Scrutiny
This case marks one of the most serious criminal convictions related to NFT trading so far. It also highlights how regulators and prosecutors are ramping up oversight in the digital asset world—especially when it involves market manipulation.
In short: If you’re flipping NFTs, keep it clean or catch charges.
