Amir Bruno Elmaani, aka “Bruno Block,” founder of Oyster Protocol, was sentenced to four years in prison for tax crimes exceeding $5.5 million.
Amir Bruno Elmaani, better known in the cryptocurrency world as “Bruno Block” and founder of Oyster Protocol, was sentenced to four years in prison for tax crimes amounting to more than $5.5 million.
The sentencing, announced by U.S. Attorney Damian Williams for the Southern District of New York, underscored the severity of Elmaani’s violations of tax laws and investor trust.
Convictions for tax crimes
Elmaani’s conviction stems from a series of deceptions related to the cryptocurrency “Oyster Pearl.” In September and October 2017, he began promoting Pearl tokens, claiming that they would be used for an online data storage platform called Oyster Protocol. Elmaani conducted business almost entirely under the pseudonym “Bruno Block,” concealing his true identity from prospective employees and business partners.
Elmaani conducted an initial coin offering (ICO) to sell Pearl tokens, intending to keep the “founder’s share” for personal use. He controlled Oyster Protocol Inc. through a shell company unrelated to his real name, intentionally maintaining a veil of secrecy.
His actions brought huge financial gains, but he still ended up evading taxes.
The founder’s deceptive behavior damaged the value of the Pearl token. In late October 2018, he used blockchain technology to mint new Pearl tokens for his personal use, significantly increasing its total supply.
Soon after, he converted these newly minted tokens into other types of cryptocurrencies on online marketplaces or exchanges. The scheme caused trading to cease, the price of Pearl tokens held by investors to plummet, and ultimately led to its delisting from major exchanges.
Elmaani's actions not only undermined investor trust, but also highlighted the need for regulatory oversight in the cryptocurrency market. U.S. Attorney Damian Williams said that participants in the cryptocurrency market must abide by established rules, and this case is a clear reminder that those who do not follow the rules will face consequences.
Exposing Elmaani’s tax evasion scheme
Elmaani’s lavish spending habits further exposed his tax evasion scheme. Despite filing a false 2017 tax return claiming only about $15,000 in income from his “patented design” business, he went on a massive spending spree in 2018. These included the purchase of multiple yachts, a significant investment in a carbon fiber composites company, a home improvement store, and the acquisition of two homes, one in the name of a shell company and the other in the name of an associated company.
Elmaani's actions resulted in an estimated $5,523,794 in lost U.S. tax revenue. This case highlights the importance of transparent financial reporting and the consequences for those who attempt to evade their tax obligations. #监督 #投资
