Tax Evasion Lands Oyster Pearl Founder Bruno Brock in 4-Year Sentence

In a significant legal development, Amir Bruno Elmaani, widely known as "Bruno Brock" and the mastermind behind the blockchain protocol Oyster Pearl, confessed to orchestrating a tax evasion scheme that resulted in a staggering loss of over $5.5 million. This admission came to light in April of 2023.

The U.S. Department of Justice (DOJ) recently revealed that Elmaani, a 31-year-old resident of Martinsburg, West Virginia, has been sentenced to four years in federal prison for his involvement in these tax-related wrongdoings. Along with his prison term, Elmaani has been placed under one year of supervised release and has been ordered to make restitution for the estimated tax deficit, totaling a substantial $5.5 million. These punitive measures were imposed after Elmaani pleaded guilty earlier in the year.

Initially, Elmaani faced separate charges in 2020, brought forth by both the Internal Revenue Service (IRS) and the Securities and Exchange Commission (SEC), with assistance from the Federal Bureau of Investigation and the Commodity Futures Trading Commission.

The DOJ investigation revealed that Elmaani utilized a coin mixing technique to obscure the true destination of cryptocurrencies within the blockchain. This complex process ultimately led to the redirection of funds, initially to family members and acquaintances, and eventually back to Elmaani himself.

The beginning of this legal saga traces back to 2017 when Elmaani gained substantial profits from the initial coin offering of the pearl (PRL) cryptocurrency. Instead of accurately reporting these earnings, he resorted to fraudulent means to manipulate his tax filings. A remarkable $10 million in proceeds was subsequently diverted towards the acquisition of multiple yachts (utilized for the storage of gold bars), real estate holdings, and extensive home renovations.

Elmaani candidly confessed in his plea agreement, as per the official announcement,

"I publicly stated that following the ICO, the supply of PRL would remain static, and the smart contract that created PRL would be 'locked.' However, contrary to these assertions, on or about October 29, 2018, I exploited the smart contract to generate new PRL, without divulging this information to anyone, including my colleagues involved in the Oyster Protocol project."

U.S. Attorney Damian Williams firmly declared,

"Amir Elmaani not only evaded his responsibility to pay taxes on substantial cryptocurrency profits, but he also betrayed the trust of investors in the cryptocurrency he established. Participants in the cryptocurrency markets are expected to adhere to established regulations, and this Office is unwavering in its commitment to prosecute those who choose to flout these rules."

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