Cryptocurrency Founder Arrested, Charged In Multimillion-Dollar Exit Scam
Amir Bruno Elmaani, a/k/a “Bruno Block,” the founder of the cryptocurrency “Oyster Pearl,” has been charged with tax evasion. As alleged, Elmaani made millions of dollars from the sale of a new cryptocurrency but evaded reporting that income to the IRS, including by filing a false tax return, operating his business and owning assets through pseudonyms and shell companies, obtaining income through nominees, and dealing in gold and cash. Elmaani was arrested Wednesday morning in Martinsburg, West Virginia.
In a separate civil action, the Securities and Exchange Commission is filing civil charges against Elmaani today.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Amir Bruno Elmaani purported to establish a high-tech method of financing a high-tech business, but the underlying scheme was old-fashioned fraud and tax evasion. Elmaani allegedly generated millions by soliciting investor money through his own cryptocurrency, adding to the purportedly fixed number of tokens and converting them to other cryptocurrencies, and failing to report or pay tax on any of the proceeds. Thanks to the FBI and IRS-CI, Elmaani is now in custody and facing federal prosecution.”
FBI Assistant Director William F. Sweeney Jr. said: “Taking advantage of the ever-so-popular cryptocurrency market, Elmaani allegedly capitalized on the investments of those who purchased virtual currency through Oyster Pearl, which he founded. As it turns out, Elmaani was funneling the proceeds of his alleged cryptocurrency scheme through a shell company that hid the true nature of his financial interests, ultimately never paying taxes on his earnings. With minimal reported income in 2018, he still managed to spend over $10 million for the purchase of yachts, but after today’s arrest, he won’t be sailing anywhere anytime soon.”
IRS Special Agent-in-Charge Kelly R. Jackson said: “Ensuring the integrity of our tax system is a priority of IRS-CI. Evading taxes only aims to deteriorate the confidence in this system and those who fail to pay their fair share will be investigated. Using cryptocurrency as a means to defraud and evade taxes will not stop our agents from doing what we do best – following the money.”
As alleged in the Indictment unsealed today in Manhattan federal court:
Cryptocurrency Founder Arrested, Charged In Multimillion-Dollar Exit Scam