Founder of Oyster Protocol Sentenced to Four Years in Prison for Tax Evasion
Amir Bruno Elmaani, the founder of the now-defunct cryptocurrency scheme Oyster Protocol, has been sentenced to the maximum term of four years in prison for tax evasion. The United States Attorney’s Office announced on October 31 that Elmaani, also known as “Bruno Block,” received his sentence after pleading guilty to secretly minting and selling Pearl tokens without paying income tax on the profits. Elmaani admitted to causing tax losses of over $5.5 million.
Violation of Tax Obligations and Investor Trust
District Attorney Damian Williams stated that Elmaani violated his duty to pay taxes on millions of dollars in cryptocurrency profits and betrayed the trust of investors in the cryptocurrency he founded. Between September and October 2017, Elmaani promoted Pearl (PRL), a cryptocurrency that allowed investors to purchase data on the blockchain-based Oyster Protocol platform.
Secret Minting and Dumping of Tokens
However, unbeknownst to the Oyster Protocol team and investors, Elmaani secretly minted a large number of PRL tokens and sold them for personal gain in October 2018. In his plea agreement, Elmaani admitted to minting new PRL tokens without informing anyone involved in the project and then selling them on a digital trading platform. He acknowledged that buyers were likely unaware of the increased total supply of PRL.
Misleading Tax Returns and Lavish Spending
Despite earning millions from this scheme, Elmaani filed a tax return in 2017 claiming only $15,000 in earnings from a patent design business. He reported zero income to tax authorities in 2018. The court discovered that Elmaani spent over $10 million on multiple yachts, $1.6 million at a carbon-fiber composite company, and hundreds of thousands of dollars at home improvement stores. He also purchased two homes, one through a shell company and the other under the names of his associates.
Using Nominees and Failure to Report Cryptocurrency Proceeds
Elmaani used friends and family as nominees to receive cryptocurrency proceeds and transfer them to his own accounts or convert them into US currency without reporting or paying taxes on any of the proceeds. Additionally, he engaged in substantial transactions involving precious metals and kept gold bars in a safe on one of his yachts.
Sentencing and Restitution
In addition to the four-year prison sentence, Elmaani will serve one year of supervised release and must pay $5.5 million in restitution.
Hot Take: Oyster Protocol Founder Receives Maximum Sentence for Tax Evasion
The founder of Oyster Protocol, Amir Bruno Elmaani, has been sentenced to four years in prison for tax evasion. Elmaani admitted to secretly minting and selling Pearl tokens without paying income tax on the profits, causing tax losses exceeding $5.5 million. This case highlights the importance of fulfilling tax obligations and maintaining investor trust in the crypto industry. Elmaani’s lavish spending, misleading tax returns, and use of nominees to handle cryptocurrency proceeds demonstrate a blatant disregard for financial regulations. The sentencing serves as a reminder that individuals engaged in fraudulent activities will face severe consequences.
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