Musician Jonathan Mann earned $3 million by selling NFTs, but lost nearly all of it due to taxes and the market crash

2025-06-09 09:44:03
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ChainCatcher news, according to Cointelegraph, musician Jonathan Mann nearly lost all his funds after earning $3 million through NFT sales due to the cryptocurrency market crash and tax issues. He turned this experience into a song to warn crypto investors about tax risks.

In January 2022, Mann sold 3,700 songs as NFTs at a price of $800 each, earning about $3 million in ETH. Due to not cashing out in time and the drop in ETH prices, he faced a requirement from the IRS to pay taxes on the full income, amounting to $1.095 million. To offset the taxes, he collateralized his ETH to borrow through Aave, but lost 300 ETH in a chain liquidation triggered by the collapse of the Terra ecosystem. Ultimately, he was forced to sell an Autoglyph NFT he had purchased earlier for $1.1 million to pay the taxes. Mann stated that despite the heavy blow, he continues to create and release NFT songs daily, hoping to achieve success again.

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