Amir “Bruno Block” Elmaani, the
31-year-old Founder of the Oyster Protocol that powers Pearl (PRL) tokens, has
pleaded guilty to allegations of tax evasion to the tune of $5.5 million. US
prosecutors disclosed on Thursday, noting that he has agreed to pay restitution
of at least the same amount.
Elmaani, who was arraigned
before US District Judge Collen McMahon, also admitted that he secretly minted
and sold PRL tokens, causing the price of the token to drop sharply, Damian
Williams, the US Attorney for the Southern District of New York said.
Cryptocurrency founder “Bruno Block” pleads guilty to tax crimeshttps://t.co/DUPqaYZOup
— US Attorney SDNY (@SDNYnews) April 6, 2023
According to Williams, Elmaani
in September and October 2017 started promoting the Oyster Protocol and PRL
tokens almost exclusively under his pseudonym, “Bruno Block.” However, in
breach of his investors’ trust, the Founder in or about October 29, 2018, secretly
minted new PRL tokens for his personal gain, contrary to his pledge that the
token amount was fixed.
Following his action, the
Founder converted the newly minted PRL tokens to other types of digital assets
and sold them at an online exchange. This development caused PRL tokens to be
halted and subsequently delisted on the primary exchange they were traded.
To launder his proceeds, the
Oyster Protocol Founder is said to have used friends and family to receive the
cryptocurrency. He also transferred funds to a bank account with his name.
“Taxes are Pretty Nasty”
According to the Department of
Justice’s statement, Elmaani’s actions were discovered by the Oyster Protocol
management who alerted the public.
The CEO of the digital asset
company in a recorded call is also said to have asked Elmaani why he took
additional PRL tokens “if he had already cashed out million of dollars’ worth
of Pearl tokens in the past.” To this, Elmaani responded that “taxes are pretty
nasty,” the statement said.
Furthermore, US prosecutors said
the Founder filed a false tax return in 2017, saying he made only $15,000 from
a “patent design” business. In the following year, he reported no income
despite spending $12.3 million dollars.
“Nevertheless, ELMAANI spent, in
2018, over $10 million for the purchase of multiple yachts, $1.6 million at a
carbon-fiber composite company, hundreds of thousands of dollars at a home
improvement store, and over $700,000 for the purchase of two homes, one of
which was titled in…
