If they bought their crypto without KYC or sold their art for crypto then it's not obvious how the IRS could connect the public address with the owner of the private key.
Hard doubt any "crypto bro" bothered to research anything about KYC.
Yes, but the fact that taxes are owed when you have income shouldn't be a surprise to anyone making money in any manner in the U.S.
I got out of crypto last year. Very glad to be done, but figuring out the tax situation this year was a nightmare.