Amir “Bruno Block” Elmaani, the 31-year-old Founder of the Oyster Protocol that powers Pearl (PRL) tokens, has pleaded guilty to charges of tax evasion in the US courts. This was revealed by the US Attorney for the Southern District of New York who stated that Elmaani agreed to pay a restitution of at least $5.5 million – the same amount he illegally evaded.

Elmaani was discovered to have misled participants and investors of the Oyster Protocol by engaging in activities under a pseudonym, “Bruno Block”. He then secretly minted and sold PRL tokens in breach of his investors’ trust at the end of October 2018. This caused a drop in the value of the token and led to the sole exchange that traded PRL tokens to delist it.

The Founder is also accused of using family and friends to launder the cryptocurrency he made from the fraudulent activities. Furthermore, Elmaani tried to cover his tracks by filing a false return in 2017 claiming he made only $15,000 from a “patent design” business. And in 2018, he lied to the IRS about having no income even though his expenses cost $12.3 million. With the funds, Elmaani purchased multiple yachts, spent on a carbon-fiber composite company, used funds at a home improvement store, and bought two houses with an associate.

The Founder has pleaded guilty to filing a false tax return in 2017 and failing to file a tax return in 2018. The charges could lead to up to three years in prison for the former and 12 months confinement for the latter. Elmaani also promised to pay restitution of at least the $5.5 million he illegally evaded. The case serves as a warning to individuals and businesses to abide by the law when it comes to filing of tax returns.



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