Crypto Fraud in Australia: Brendan Gunn Faces Charges Over $100K Scam

Brendan Gunn, the brother of Olympic breakdancer Rachael “Raygun” Gunn, is facing criminal charges in Australia for allegedly handling over $100,000 from a cryptocurrency fraud scheme. Gunn, who served as director of Mormarkets Pty Ltd, is accused of managing two bank cheques totaling AUD 181,000 ($120,000 USD) from victim investors under the pretense of converting funds into cryptocurrency.

The case, currently in the Downing Centre Local Court, highlights the ongoing risks in cryptocurrency investments and the Australian Securities and Investments Commission’s (ASIC) crackdown on financial scams.

Allegations and Mormarkets Pty Ltd’s Role

Gunn, as director of Mormarkets Pty Ltd, allegedly played a central role in processing fraudulent transactions. According to the charges:

• The bank cheques totaling AUD 181,000 came from three investors who believed their money would be converted into cryptocurrency.
• Gunn’s company facilitated cryptocurrency conversions and promoted overseas investments, though authorities claim these transactions were fraudulent.
• Despite multiple bank account closures due to fraud concerns, Gunn allegedly opened new accounts to continue receiving and transferring investor funds between March and May 2020.

The case raises concerns about unregulated crypto investment firms, many of which promise high returns but often lack proper oversight or licensing.

Bank Account Closures and Scam Warnings

One of the key red flags in the case is the repeated closure of Mormarkets’ bank accounts by Australian banks. Financial institutions reportedly flagged Gunn’s activities due to concerns about scams. Despite these warnings:

• Gunn allegedly continued opening new accounts to facilitate transactions.
• Banks identified suspicious money movements linked to crypto investments, often a telltale sign of investment fraud or money laundering.
• Authorities claim Gunn was aware of the fraud risks but proceeded anyway, violating anti-money laundering (AML) and fraud prevention regulations.

ASIC has been actively targeting unregistered financial operations in the crypto space, making this case a high-profile example of its enforcement efforts.

Legal Consequences: Jail Time and Fines

If convicted, Gunn faces:

• Up to three years in prison for his role in handling fraudulent transactions.
• A fine of AUD 37,800 ($25,000 USD) under Australian financial crime laws.
• Potential further civil penalties, depending on ASIC’s ongoing investigation.

Gunn appeared in court on March 4, 2025, and his next court hearing is scheduled for April 29, 2025. The prosecution will likely present evidence of fraudulent financial activity, investor deception, and violations of financial compliance laws.

ASIC’s Stance: Cracking Down on Crypto Fraud

ASIC Chair Joe Longo emphasized that protecting investors from crypto scams remains a top priority.

“ASIC continues to prioritize scam prevention and detection activity to protect consumers. We will continue to partner with international law enforcement organizations and investigate and take action where we see misconduct.”

ASIC has ramped up investigations into fraudulent crypto schemes, especially companies operating without proper financial licenses. The regulator has been working alongside global law enforcement to track illicit crypto transactions, which are often difficult to trace once converted into digital assets.

This case aligns with recent global efforts to regulate crypto transactions and prevent bad actors from exploiting retail investors.

Rachael Gunn’s Position: Not Implicated

Rachael “Raygun” Gunn, Brendan Gunn’s sister, is not involved in the allegations. She gained global recognition as a breakdancer at the Paris 2024 Olympics and has remained separate from her brother’s legal troubles.

Despite the charges, Brendan Gunn has received public support from his family, but the case may impact their public image due to media coverage.

What This Means for Crypto Investors

The Gunn case serves as a cautionary tale for cryptocurrency investors in Australia and beyond. Key takeaways:

1. Verify Crypto Investment Firms

• Before investing, ensure that the company is registered with ASIC or another recognized financial authority.
• Research whether the firm has a history of financial misconduct or closed accounts due to fraud concerns.

2. Be Cautious of “Too Good to Be True” Offers

• Scams often promise high, risk-free returns—which rarely exist in real crypto markets.
• Always ask for transparent documentation and audit reports from any investment firm.

3. Watch for Red Flags in Transactions

• Be wary if an investment platform frequently changes bank accounts or asks for bank cheques instead of standard crypto payments.
• Check online reviews and regulatory warnings before sending money to any crypto-related business.

Final Thoughts

Brendan Gunn’s case underscores the legal risks tied to crypto fraud and the growing enforcement actions by Australian authorities. With the global crypto industry under increasing scrutiny, investors should remain vigilant and only engage with licensed, transparent companies.

ASIC’s crackdown signals tighter controls on crypto investments, and cases like Gunn’s could set a precedent for future legal actions against fraudulent operators.

As this case develops, all eyes will be on the April 29, 2025 court hearing, where new details may emerge about the extent of financial misconduct and investor losses.