This money laundering approach also has an additional potential (almost certainly illegal) tax upside. The sockpuppet that buys from you can sell it downstream

This money laundering approach also has an additional potential (almost certainly illegal) tax upside. The sockpuppet that buys from you can sell it downstream at a greatly reduced price to another sockpuppet (or back to you) and report it as a loss offsetting other reported income while the cycle repeats. Obviously anyone involved in this can loop and repeat this any number of ways for a variety of preferred outcomes. Awww shucks, I just made a bad investment and got "unlucky" this time... I think there is an analysis somewhere that more-or-less proves this is exactly what Lindsay Lohan did via NFTs. Not new to NFTs or crypto at all but it is much easier and far more nebulous when ugly JPGs of Apes were "trading" in the hundreds of thousands of dollars.