ASIC Charges Olympian's Brother Over Alleged Crypto Scam

Australia's finance watchdog, the Australian Securities and Investments Commission (ASIC), has charged Brendan Gunn, the brother of Olympian breakdancer Rachael "Raygun" Gunn, with allegedly dealing with money suspected to be proceeds of crime. The charges stem from Gunn's operation of a fiat-to-crypto conversion company, Mormarkets Pty Ltd.

ASIC alleges that Gunn dealt with two bank cheques totaling $181,000, which were the proceeds of four investment amounts made by three victims. The investments were made for conversion into cryptocurrencies through Gunn's company. ASIC claims that Gunn dealt with the proceeds of these investments without the knowledge or consent of the investors.

Gunn was charged with one count of dealing with money that could be reasonably suspected to be the proceeds of crime. He appeared in court on March 4 and is expected to return on April 29. If convicted, Gunn faces up to three years in prison, a $37,800 fine, or both.

ASIC Chair Joe Longo stated that the regulator continues to prioritize scam prevention and detection activity, and will take action where required. The charges against Gunn come as Australian regulators are shifting their focus towards the crypto industry, with plans to tighten regulations and crack down on crypto-related crimes and scams.

In recent months, Australian authorities have taken action against several remittance service providers and crypto exchanges for possible compliance issues. In December 2024, the Australian Transaction Reports and Analysis Center (AUSTRAC) announced its intention to focus on the cryptocurrency industry in 2025, with a particular emphasis on crypto ATM providers who may be flouting Anti-Money Laundering laws.

ASIC has also released a consultation paper on proposed guidance for crypto, placing many digital assets under the category of financial products and requiring firms dealing in crypto to be licensed. These regulatory moves aim to strengthen oversight and protect investors in the rapidly evolving crypto landscape.