Brendan Gunn, brother of Olympic breakdancer Rachael Gunn, is facing serious legal trouble in Australia. He has been accused by the Australian Securities and Investments Commission (ASIC) of handling money believed to be connected to crimes .
Brother of Olympian Rachael Gunn Charged in Crypto Crime
Gunn was allegedly involved in transactions consisting of proceeds of crime between March and May 2020, according to ASIC. He faces a charge under s400.9(1) of the Criminal Code and appeared in Sydney Downing Centre Local Court on Monday.
The charge carries a potential maximum punishment of up to three years in prison and a fine of $37,800, or both.
Enforcement Suite for Crypto and Suspicious Transactions
Gunn was the director of a company called Mormarkets Pty Ltd, which offered fiat-to-crypto conversion services.
ASIC claims that he was responsible for processing two bank cheques worth $181,000 that had been provided by three separate investors.
These people had money deposited and expected to receive cryptocurrency or other investment returns.Gunn is said to have applied to open many bank accounts for Mormarkets so that they could take deposits after several were closed for suspected fraud.
These transactions were flagged as suspicious by banks, and Gunn was reportedly warned of such risks. Yet he is accused of continuing to run the business.
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Crackdown on Crypto Scams
The chair of ASIC, Joe Longo, highlighted the agency’s dedication to protecting investors. ASIC focuses on scam prevention and works closely with international law enforcement in tackling fraud, he said.
“Our indictment is the latest step in a broader effort to combat financial crime in Australia.” ASIC’s investigation resulted in the Commonwealth Director of Public Prosecutions assuming responsibility for the case–with the intent of prosecuting those who assist scammer activities, particularly in the cryptocurrency space.
AUSTRAC’s Focus on Crypto Has Grown
Australia’s financial crime regulator, AUSTRAC, has also stepped up its scrutiny of the cryptocurrency industry. In February, it slapped action on 13 remittance and crypto exchange service providers, with over 50 others still being investigated.
AUSTRAC CEO Brendan Thomas has signaled an even tougher line on crypto businesses come 2025. Specifically, the agency is targeting crypto ATM providers that are potentially flouting anti-money laundering laws.
Gunn’s case is a fitting example of the dangers in the rapidly developing crypto world. Although digital currencies are a source of opportunity, they also draw people looking to exploit regulatory gaps.
Gamblers who may be up to no good could see serious consequences as soon as Australian authorities ramp up the enforcement effort.