Brendan Gunn, brother of Australian Olympian Rachael 'Raygun' Gunn, received a suspended 12-month custodial sentence from a New South Wales court after pleading guilty to dealing with more than US$180,000 (AU$261,000) suspected to be proceeds of crime linked to an offshore cryptocurrency investment scam. Gunn admitted handling the funds despite repeated bank warnings of fraud connected to accounts operated by Mormarkets, which traded as Coinshype and accepted deposits from Australians for cryptocurrency investments between December 2018 and May 2020. The prosecution forms part of broader regulatory efforts to pursue individuals accused of facilitating cross-border investment scams targeting Australians.
Court Sentences Gunn to 12-Month Suspended Jail Term
Gunn was jailed for 12 months, the maximum penalty for the offence, but was released immediately after agreeing to a US$3,000 (AU$4,350) recognisance requiring 12 months of good behaviour. He had pleaded guilty earlier this year to dealing with the suspected proceeds of crime. The case followed an investigation by the regulator and prosecution after the matter was referred for criminal proceedings.
Mormarkets Operated 22 Bank Accounts Across Six Institutions
From December 2018, Gunn acted as a director of Mormarkets, which traded as Coinshype and accepted deposits from Australians for cryptocurrency and other purported investments. Over a period spanning January 2019 to May 2020, the business opened 22 accounts with six financial institutions. During that time, banks repeatedly alerted Gunn to customer complaints involving alleged fraud and suspicious transactions linked to the accounts. After two accounts were closed, he received two bank cheques containing investment proceeds worth US$181,000 (AU$262,450) before forwarding them to an associate. The regulator said Gunn continued dealing with the funds despite multiple warnings that the money was connected to suspected scam activity, helping suspected international scammers transfer money taken from Australians.
FAQ
What sentence did Brendan Gunn receive for handling suspected crypto scam proceeds?
Brendan Gunn received a 12-month custodial sentence, the maximum penalty for the offence, but was released immediately after agreeing to a US$3,000 (AU$4,350) recognisance requiring 12 months of good behaviour.
How much money did Brendan Gunn handle that was suspected to be linked to the crypto scam?
Gunn admitted dealing with more than US$180,000 (AU$261,000) that was reasonably suspected to be the proceeds of crime connected to an offshore cryptocurrency investment scam. He received two bank cheques totalling US$181,000 (AU$262,450) before forwarding them to an associate.
What was Mormarkets and how did it operate?
Mormarkets, which traded as Coinshype, accepted deposits from Australians for cryptocurrency and other purported investments. From December 2018, Gunn acted as director and the business opened 22 accounts with six financial institutions between January 2019 and May 2020, during which banks repeatedly alerted Gunn to customer fraud complaints and suspicious transactions.
