Founder of Oyster Protocol Sentenced to Four Years in Prison for Tax Evasion
Amir Bruno Elmaani, the founder of Oyster Protocol, has been sentenced to four years in prison for evading taxes. Elmaani, also known as Bruno Block, pleaded guilty to the charges on April 6. The US Attorney’s Office filed a lawsuit against Elmaani for offering unregistered initial coin offerings (ICOs), self-minting tokens, and tax evasion. Additionally, the Securities and Exchange Commission (SEC) accused him of selling millions of Pearl tokens without registering them as securities. Elmaani promoted Oyster Protocol as an innovative solution for online data storage and raised thousands of dollars from investors through the sale of Pearl tokens.
Pump-and-Dump Scheme and Tax Evasion Allegations
In another action, the Department of Justice charged Elmaani with tax evasion related to his firm, Oyster Protocol. He is also accused of engaging in a pump-and-dump scheme that defrauded investors and resulted in significant profits for himself. Elmaani secretly mined and sold Pearl tokens during a bull market, causing their value to surge. He then dumped the tokens on KuCoin, leading to substantial losses for investors. The court found that Elmaani spent millions of dollars on luxury items and failed to report or pay taxes on his crypto earnings.
Guilty Plea and Sentencing
Elmaani admitted to secretly minting and selling Pearl tokens without informing anyone involved in the Oyster Protocol project. He also pleaded guilty to evading income tax on the profits he generated from the project. In his statement, Elmaani acknowledged using a smart contract to mint new PRL tokens and selling them on a digital trading platform. He filed false tax returns claiming minimal income while making significant purchases, including yachts and homes. The court sentenced Elmaani to four years in prison and found him responsible for a tax loss of over $5.5 million.
Hot Take: Oyster Protocol Founder Receives Maximum Sentence for Tax Evasion
Amir Bruno Elmaani, the founder of Oyster Protocol, has been handed a four-year prison sentence for evading taxes. Elmaani, also known as Bruno Block, pleaded guilty to tax evasion charges and admitted to secretly minting and selling tokens without informing project collaborators. He also filed false tax returns while making substantial purchases and failing to report crypto earnings. The court’s decision highlights the severity of tax evasion and the importance of transparency in the cryptocurrency industry. This case serves as a reminder that individuals involved in crypto projects must comply with legal and regulatory requirements to maintain investor trust and avoid legal consequences.
By
By
By
By
By