The founder of the ETH-based Oyster Protocol smart contract platform was arrested after an exit scam in which he received multiple million-dollar gains.
Amir Bruno Elmaani, called “Bruno Block,” was arrested and charged with tax evasion. SEC stated that Block allegedly raked millions in profits from the ITO of Oyster’s proprietary Pearl cryptocurrency but didn’t report them. The yield gained was approximately $90K, or 300 ETH. The majority of the Pearl tokens gained were sold on the secondary marketplace.
The SEC stated that Mr. Elmaani claimed to have established a way of financing a hi-tech enterprise. But the idea behind it all was tax evasion and fraud.
Elmaani promoted his crypto and distributed ledger venture and then transferred his Pearl tokens to other cryptos. But, he didn’t disclose his cryptocurrency profit. Rather, he profited via the investments of the people who bought digital currencies via Oyster Pearl by acquiring extravagant purchases, like investing more than USD 10 million on yachts and more than USD 1.1 million on properties.
Elmaani filed a fraudulent tax return with the IRS and didn’t disclose the profits received on cryptos. Using the name “Bruno Block” and working via shell firms, he owned different assets, too. Utilizing its internal administrative access to blockchain tech, he minted other Pearl tokens, which he then converted to other cryptos. He cashed the benefit via friends and family to get virtual coins, which he transferred to his own bank account.
The founder of such ETH-based Oyster Protocol has been charged with 2 counts of tax evasion after being arrested in West Virginia. He is now facing 5 years in prison.
The Securities and Exchange Commission With No Decision on Defining XRP-like Cryptocurrencies
The Commission has been seeking to make a move on cryptos regulation, as they become more popular. But it seems that it lags behind when it comes to establishing clear crypto rules, contrary to China and Singapore.
According to Brad Garlinghouse, Chief Executive Officer of Ripple Blockchain, the States are lagging behind Japan, the UK, and Singapore, which have clear regulatory guidelines that gave way for cryptocurrency and blockchain enterprises.