Raygun’s brother Brendan Gunn gets 12 months for offshore crypto scam

Brendan Gunn, the brother of Australian Olympian and breakdancer Rachael “Raygun” Gunn, has been sentenced in New South Wales after admitting to handling funds linked to an offshore crypto scam.

The Local Court of New South Wales imposed a 12-month prison sentence after Gunn pleaded guilty to dealing with more than $180,000 when it was reasonable to suspect the money represented the proceeds of crime.

The case centres on an alleged offshore crypto scam that authorities say moved investor funds through Australia’s banking system before they were transferred overseas, highlighting the country’s continued efforts to combat financial crime involving digital assets.

Offshore crypto scam investigation traced funds through Australian banks

Australian investigators said the offshore crypto scam involved money handled through Mormarkets, a company where Brendan Gunn served as a director. According to Investor Daily, the business began accepting deposits from Australians for cryptocurrency investments and other financial products in December 2018.

Between January 2019 and May 2020, Mormarkets opened 22 bank accounts across six separate financial institutions. During that period, several banks reportedly alerted Gunn after customers raised concerns over suspicious transactions and potential fraud involving funds deposited into those accounts.

Despite those warnings, the Australian Securities & Investments Commission (ASIC) alleged that Gunn continued dealing with the funds, allowing transactions connected to the suspected offshore crypto scam to continue.

“By continuing to deal with those funds, he helped suspected international scammers move money taken from Australians,” — Sarah Court, Chair, Australian Securities & Investments Commission (ASIC).

Earlier this year, Gunn admitted that he dealt with more than $180,000 despite circumstances that made it reasonable to suspect the money was the proceeds of crime. Authorities allege the funds were linked to an international cryptocurrency investment fraud targeting Australian investors.

The Local Court ultimately imposed the maximum available sentence of 12 months’ imprisonment. However, Gunn was released immediately after signing a $3,000 recognizance, requiring that he remain of good behaviour and not commit further offences for one year.

Regulators intensify crackdown on offshore crypto scam networks

The prosecution forms part of ASIC’s broader campaign against facilitators accused of helping criminal organisations move illicit funds connected to an offshore crypto scam and other cross-border investment fraud schemes.

ASIC has increasingly worked alongside Australia’s National Anti-Scam Centre and law enforcement agencies to identify individuals and businesses suspected of enabling financial crime through conventional banking channels and digital asset transactions.

“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,” — Sarah Court, Chair, Australian Securities & Investments Commission (ASIC).

Authorities argue that while cryptocurrencies themselves are legitimate financial technologies, the borderless nature of blockchain transactions can make them attractive to organised criminal groups seeking to move stolen funds internationally.

The investigation also demonstrates how traditional financial institutions remain a critical part of detecting suspicious activity. According to the case, banks repeatedly flagged unusual transactions before regulators intervened, illustrating the importance of compliance measures in disrupting an offshore crypto scam before additional victims suffer losses.

Crypto fraud remains a growing global concern

The sentencing has attracted additional public attention because Brendan Gunn is the brother of Australian Olympian Rachael “Raygun” Gunn, whose appearance at the 2024 Paris Olympic breakdancing competition generated widespread international discussion. Media interest has also increased following reports that a Netflix documentary about the athlete is expected to be released.

However, regulators have emphasised that the prosecution is centred solely on financial crime and not on Gunn’s family connections.

The case also reflects wider concerns surrounding cryptocurrency investment fraud. While blockchain technology supports a growing number of legitimate financial services and innovation, scammers continue exploiting investor interest in digital assets through fake investment opportunities, impersonation schemes and cross-border payment networks.

An offshore crypto scam often relies on international transfers that make tracing stolen assets significantly more difficult once funds move through multiple jurisdictions or cryptocurrency wallets. That complexity can delay investigations and reduce the likelihood of recovering stolen money.

Financial experts continue advising investors to verify whether investment platforms hold the appropriate licences before sending funds. They also recommend exercising caution whenever promised unusually high returns, especially when investment opportunities require immediate payment or transfers to overseas bank accounts or unfamiliar cryptocurrency wallets.

ASIC’s latest enforcement action reinforces that regulators are increasingly targeting not only the masterminds behind an offshore crypto scam, but also individuals accused of facilitating the movement of illicit funds through financial institutions.