Last Updated: December 5, 2025 | Word Count: ~5,500 | Reading Time: 22 minutes
Quick Facts
| Specification | Value |
| Project Name | Oyster Protocol |
| Token Symbol | PRL (Pearl) |
| Status | ❌ Exit Scam |
| Category | Decentralized Storage / Web Monetization |
| ICO Date | October 2017 |
| Exit Scam Date | October 30, 2018 |
| Amount Stolen | ~$300,000-570,000 |
| Founder | “Bruno Block” (Amir Bruno Elmaani) |
| Criminal Charges | Tax evasion, unregistered securities |
| Sentence | 4 years federal prison |
| Successor Project | Opacity (community-driven) |
Table of Contents
- Executive Summary
- What Was Oyster Protocol?
- The Man Behind “Bruno Block”
- The Exit Scam
- How He Got Caught
- Criminal Charges and Trial
- The Aftermath
- Lessons Learned
- Frequently Asked Questions
- Sources & References
Executive Summary
On October 30, 2018, the crypto community watched in horror as Oyster Protocol—a promising decentralized storage project—collapsed in real-time. The anonymous founder known only as “Bruno Block” exploited a hidden function in the PRL smart contract, minted millions of new tokens out of thin air, and dumped them on KuCoin exchange for hundreds of thousands of dollars.
It was a textbook exit scam, made more dramatic by the founder’s anonymity and the technical sophistication of the attack.
But “Bruno Block” made critical mistakes. Despite operating under a pseudonym, he left trails: luxury purchases, real estate transactions, yacht acquisitions—all funded by crypto that the IRS would eventually trace. In December 2020, federal prosecutors revealed his true identity: Amir Bruno Elmaani, a U.S. citizen who had evaded taxes on millions of dollars in cryptocurrency income.
In 2023, Elmaani was sentenced to 4 years in federal prison—not primarily for the exit scam itself, but for the tax evasion that accompanied it. The case demonstrated that even anonymous crypto founders can’t hide from the IRS when they convert their gains into yachts and mansions.
Oyster Protocol is now a cautionary tale about anonymous teams, smart contract backdoors, and the long arm of tax enforcement.
What Was Oyster Protocol?
The Vision
Oyster Protocol aimed to solve two problems simultaneously:
1. Decentralized File Storage Like a “blockchain Dropbox,” Oyster would let users store files across a distributed network powered by the IOTA Tangle. Files would be encrypted, split into pieces, and stored by network participants who earned PRL tokens for providing storage.
2. Website Monetization Without Ads Website owners could embed a small JavaScript snippet that would use visitors’ spare CPU power to perform proof-of-work for the Oyster network. This would replace traditional advertising—websites would earn PRL tokens instead of showing ads, and visitors would contribute a tiny amount of processing power instead of viewing advertisements.
Why It Was Compelling
In 2017-2018, this pitch resonated strongly:
- Ad fatigue: Users hated intrusive advertising
- Storage costs: Centralized cloud storage was expensive
- Privacy concerns: Decentralized storage promised better privacy
- IOTA hype: The Tangle was seen as next-generation blockchain tech
The combination of storage and monetization in one protocol was genuinely innovative.
The PRL Token
| Specification | Value |
| Token Name | Pearl (PRL) |
| Platform | Ethereum (ERC-20) |
| ICO Price | ~$0.01 |
| Peak Price | ~$4.50 (January 2018) |
| Peak Market Cap | ~$200 million |
| Total Supply | Variable (this became the problem) |
The Team Mystery
From the beginning, Oyster had an unusual characteristic: the founder was anonymous.
“Bruno Block” was the pseudonymous creator and lead developer. He communicated through:
- Telegram
- Medium posts
- The Oyster Discord
He claimed anonymity was for “privacy and security reasons.” The rest of the team included some public-facing members who handled marketing and community management, but the core technical development was controlled by Bruno Block alone.
This should have been a red flag.
The Man Behind “Bruno Block”
Amir Bruno Elmaani
When federal prosecutors finally revealed Bruno Block’s identity, the name was Amir Bruno Elmaani—a U.S. citizen whose middle name “Bruno” was likely the origin of his pseudonym.
Before Oyster Protocol, Elmaani’s background was in technology, though details remain sparse. What’s clear from court documents is that he:
- Controlled the Oyster Protocol smart contracts
- Had the technical skills to implement the backdoor
- Managed the ICO proceeds
- Made decisions unilaterally about protocol direction
The Lifestyle
Court filings revealed that Elmaani used his cryptocurrency gains to fund an extravagant lifestyle:
- Multiple properties: Real estate purchases in the U.S.
- Yachts: At least two boats
- Vehicles: Luxury cars
- Cash: Large unexplained cash deposits
All while filing tax returns that dramatically understated his income—or not filing at all.
The Exit Scam
October 30, 2018
The exit scam unfolded over a matter of hours:
Step 1: The Hidden Function Bruno Block had built a backdoor into the PRL smart contract—a function that allowed the contract owner to mint new tokens at will. This “director” function was obscured in the code but fully functional.
Step 2: Mass Minting On October 30, 2018, Bruno Block called this function, minting approximately 3-4 million new PRL tokens. These tokens appeared out of nowhere, instantly diluting all existing holders.
Step 3: The KuCoin Dump The newly minted tokens were immediately sent to KuCoin exchange and sold into the order book. As millions of PRL hit the market, the price cratered.
Step 4: The Disappearance Bruno Block went silent. Telegram, Discord, Medium—all communication ceased. The anonymous founder had vanished with the proceeds.
The Numbers
| Metric | Value |
| Tokens Minted | ~3-4 million PRL |
| Approximate Value Extracted | $300,000-570,000 |
| PRL Price Before | ~$0.10-0.15 |
| PRL Price After | Near zero |
| Time Elapsed | Hours |
Why KuCoin?
KuCoin was one of the few exchanges listing PRL at the time. It had:
- Sufficient liquidity to absorb the dump
- Less rigorous KYC than some competitors
- Quick withdrawal processing
By the time anyone understood what happened, the ETH proceeds were on their way out.
The Team’s Response
The remaining (non-anonymous) Oyster team members were blindsided. They:
- Immediately issued warnings not to buy PRL
- Contacted KuCoin to halt trading
- Announced they had no control over the smart contract
- Began planning a community response
How He Got Caught
The IRS Trail
Anonymous on-chain is one thing. Anonymous in the real world is much harder—especially when you’re buying yachts.
The Lifestyle Problem Elmaani converted his crypto to fiat and spent it on assets that created paper trails:
- Real estate requires deeds and mortgages
- Yacht purchases require registration
- Bank deposits over $10,000 trigger reporting
- Luxury purchases leave receipts
The Tax Returns For 2017, Elmaani filed a tax return that dramatically understated his income. For 2018, he allegedly filed nothing at all. Meanwhile, blockchain analytics could trace the ICO proceeds and exit scam funds.
The Investigation The IRS Criminal Investigation division, working with the DOJ and SEC, pieced together:
- Blockchain transactions from ICO to exit scam
- Exchange records showing conversions to fiat
- Bank records showing deposits
- Asset purchases tied to those funds
- The identity behind the pseudonym
December 2020: Charges Filed
In December 2020, the DOJ announced charges against Amir Bruno Elmaani:
- Two counts of federal tax evasion
- Additional charges related to the unregistered securities offering
The charges focused primarily on tax crimes rather than the exit scam itself—a strategic choice by prosecutors who had clearer evidence for tax evasion.
Criminal Charges and Trial
The Indictment
Count 1: Tax Evasion (2017) Elmaani allegedly earned millions from the Oyster ICO and subsequent crypto activities but filed a return showing vastly understated income. He used shell companies, third parties, and pseudonymous accounts to hide the true source and amount of funds.
Count 2: Tax Evasion (2018) For 2018—the year of the exit scam—Elmaani allegedly failed to file any tax return at all, despite substantial income from cryptocurrency sales.
SEC Component
The SEC filed a parallel civil complaint alleging:
- Oyster Protocol’s ICO constituted an unregistered securities offering
- The PRL token sale violated federal securities laws
- Elmaani acted as an unregistered broker-dealer
The Guilty Plea
Elmaani ultimately pleaded guilty to the tax charges. Court documents reveal he admitted to:
- Failing to report cryptocurrency income
- Using deceptive means to conceal assets
- Understanding his tax obligations and willfully evading them
The Sentence
In 2023, Amir Bruno Elmaani was sentenced to 4 years in federal prison—the maximum allowed under his plea agreement.
Additional penalties included:
- Restitution: Millions of dollars owed to the IRS
- Forfeiture: Seizure of assets purchased with unreported income
- Supervised release: Post-prison monitoring
- Lifetime ban: From participating in securities offerings
The Aftermath
Death of Oyster Protocol
The original Oyster Protocol died on October 30, 2018. The PRL token became worthless, and the project had no path forward with:
- No lead developer
- A compromised smart contract
- Destroyed investor trust
- Regulatory scrutiny
Opacity: The Phoenix Project
A portion of the Oyster community refused to give up on the underlying vision. They launched Opacity (OPQ):
- New token, new smart contract
- Same decentralized storage concept
- Community-driven development
- No single anonymous founder
Opacity is not a direct continuation of Oyster—it’s a spiritual successor built by people who believed in the original vision despite Bruno Block’s betrayal.
KuCoin Response
KuCoin delisted PRL shortly after the incident and cooperated with law enforcement investigations. The exchange was not held liable—they were victims of the fraud as much as token holders.
Impact on Anonymous Teams
The Oyster Protocol exit scam became a case study in why anonymous teams are risky:
- No accountability
- No legal recourse
- No ability to verify claims
- Single points of failure
Many investors now treat anonymous founders as a red flag rather than a privacy feature.
Lessons Learned
For Investors
1. Anonymous ≠ Safe Bruno Block claimed anonymity was for security. In reality, it was for impunity. Be extremely cautious with anonymous-founder projects.
2. Smart Contract Audits Matter The backdoor function that enabled the exit scam could have been caught by a thorough audit. Demand audit reports for any project you invest in.
3. Token Supply Should Be Fixed The ability to mint new tokens at will is a massive red flag. Look for contracts with fixed supplies or transparent governance over minting.
4. Don’t Trust, Verify Bruno Block built trust through communication. But talk is cheap—the code contained the real truth.
For Developers
1. Decentralization Must Be Real If one person can destroy your project, it’s not decentralized.
2. Backdoors Will Be Found Whether by attackers or by law enforcement, hidden functions will eventually be discovered.
3. Tax Obligations Are Real Cryptocurrency is taxable. The IRS has sophisticated blockchain analytics. Evasion leads to prison.
For the Industry
1. Better Due Diligence Standards Exchanges and investors need stronger vetting processes for new projects.
2. Audit Requirements Professional smart contract audits should be standard for any serious project.
3. Identity Verification Options The industry needs better ways to verify team credentials without compromising privacy.
Frequently Asked Questions
What was Oyster Protocol?
Oyster Protocol was a cryptocurrency project that aimed to provide decentralized file storage and an alternative website monetization system. It launched via ICO in late 2017 and was led by an anonymous founder known as “Bruno Block.”
What happened to Oyster Protocol?
On October 30, 2018, the anonymous founder Bruno Block exploited a hidden function in the smart contract to mint millions of new PRL tokens, then sold them on KuCoin exchange. This “exit scam” collapsed the token’s value and ended the project.
Who was Bruno Block?
Bruno Block was the pseudonymous founder of Oyster Protocol. His real identity was later revealed as Amir Bruno Elmaani, a U.S. citizen who was charged with tax evasion and securities violations.
How much did Bruno Block steal?
The exit scam extracted approximately $300,000-570,000 worth of cryptocurrency from the PRL token sale. However, his total unreported cryptocurrency income (including ICO proceeds) was in the millions.
What sentence did Bruno Block receive?
Amir Bruno Elmaani was sentenced to 4 years in federal prison in 2023, primarily for tax evasion charges. He was also ordered to pay restitution and forfeit assets.
What happened to PRL token holders?
PRL token holders lost most or all of their investment. The token became essentially worthless after the exit scam, and there was no compensation mechanism.
What is Opacity (OPQ)?
Opacity is a community-driven project that emerged after Oyster Protocol’s collapse. It pursues similar decentralized storage goals but operates under different leadership and a new token. It is not an official continuation of Oyster.
How did Bruno Block get caught?
Despite operating anonymously online, Elmaani created extensive paper trails by purchasing real estate, yachts, and other luxury items with his cryptocurrency proceeds. The IRS traced these purchases back to unreported income, leading to tax evasion charges.
Can I still buy PRL tokens?
The PRL token still technically exists on the Ethereum blockchain, but it has no value, no development, and no legitimate exchange listings. Purchasing it would be pointless.
Sources & References
- DOJ Press Release – “Cryptocurrency Founder Bruno Block Sentenced to Four Years” – justice.gov
- CoinDesk – “Cryptocurrency Founder Charged With Avoiding Tax to Buy Yachts” – coindesk.com
- SEC Complaint – SEC v. Elmaani – sec.gov
- CoinGeek – “Oyster Protocol: Feds charge founder over self-minting scam” – coingeek.com
- Quadriga Initiative Case Study – “Oyster Protocol Exit Scam” – quadrigainitiative.com
- Crypto News – “Oyster Pearl’s Anonymous Founder Disappears” – crypto.news
Disclaimer
This article is for informational and educational purposes only. It does not constitute financial, investment, or legal advice. Cryptocurrency investments carry significant risk. Always conduct your own research (DYOR).
Article by: LAB Blockchain Summit Research Team Category: Exit Scams | Crypto Fraud Tags: oyster protocol, PRL, bruno block, exit scam, tax evasion, amir elmaani