According to CryptoPotato, Amir Bruno Elmaani, also known as 'Bruno Block' and the founder of Oyster Protocol, has been sentenced to four years in prison for tax offenses totaling over $5.5 million. The United States Attorney for the Southern District of New York, Damian Williams, announced the verdict, emphasizing the seriousness of Elmaani's actions that violated both tax laws and investor trust.
Elmaani's conviction is related to deceptive practices involving the cryptocurrency 'Oyster Pearl.' In September and October 2017, he promoted Pearl tokens, claiming they would be used for an online data-storage platform called Oyster Protocol. Elmaani conducted an initial coin offering (ICO) to sell Pearl tokens, intending to retain a 'founder's share' for personal use. He controlled Oyster Protocol Inc. through a shell company unassociated with his real name, maintaining a deliberate veil of secrecy.
In late October 2018, Elmaani exploited his access to blockchain technology to mint new Pearl tokens for personal use, significantly increasing their total supply. This scheme led to a halt in trading and a substantial drop in the price of Pearl tokens held by investors, eventually resulting in their delisting from the primary exchange. U.S. Attorney Damian Williams stated that participants in the cryptocurrency markets must adhere to established rules, and this case serves as a stark reminder of the consequences for those who fail to do so.
Elmaani's extravagant spending habits further exposed his tax evasion scheme. Despite filing a false 2017 tax return claiming only approximately $15,000 of income from a 'patent design' business, he made substantial expenditures in 2018. These included the purchase of multiple yachts, a significant investment in a carbon-fiber composite company, extensive spending at a home improvement store, and acquiring two homes. The tax loss to the United States resulting from Elmaani's actions amounted to approximately $5,523,794. This case underscores the importance of transparent financial reporting and the consequences for those who attempt to evade their tax obligations.
