Aussie Olympian's brother sentenced over crypto scam

The brother of Australian breakdancing Olympian 'Raygun' has been sentenced 12 months' imprisonment for his role in a global cryptocurrency scam.

Earlier in the year, former finance director Brendan Gunn pleaded guilty to dealing with more than $180,000 when it was "reasonable to suspect those funds were the proceeds from a crime".

The funds were suspected of being proceeds of crime derived from an offshore cryptocurrency investment scam that targeted Australians.

Gunn is to be released immediately upon entering into a recognisance of $3000 requiring he be of good behaviour for 12 months.

ASIC chair Sarah Court said: "Gunn ignored several clear warnings, including customer complaints made to Mormarkets' various Australian banks, that the money moving through Mormarkets' accounts was linked to suspected scam activity."

"By continuing to deal with those funds, he helped suspected international scammers move money taken from Australians."

From December 2018, Gunn was a director of Mormarkets, trading as Coinshype. Mormarkets received deposits from Australians for cryptocurrency and other investments.

Between January 2019 and May 2020, 22 separate bank accounts with six different financial institutions were opened in Mormarkets' name. On a number of occasions, banks informed Gunn they had received complaints that funds credited to Mormarkets accounts had been affected by fraud or other suspicious activity.

All accounts associated with Mormarkets were eventually closed by the banks, ASIC said.

When two of the Mormarkets bank accounts were closed, Gunn received two bank cheques which included proceeds of investment amounts totalling $181,000. He then dealt with the bank cheques by sending them to an associate.

"ASIC is committed to disrupting scams and, where possible, holding those who enable them to account. This case is another example of ASIC's broad work to combat scams, from pursuing alleged facilitators of cross-border investment scams, to taking action against institutions whose failures leave customers exposed," Court added.