Brendan Gunn: Raygun's brother admits role in cryptocurrency scam

The brother of Olympic breakdancer Raygun has admitted he made an error when was involved in a cryptocurrency investment scheme that fleeced investors of more than $180,000.

Brendan Gunn was the director of financial services company Mormarkets when he received two bank cheques issued by Commonwealth Bank totalling $181,000 in March 2020.

The funds had been deposited by three victim investors for conversion into cryptocurrency but were instead funnelled into Mormarkets accounts, according to agreed facts of his court case.

Victims were brought into the investment scheme mainly through online investments that were allegedly endorsed by celebrities.

Gunn is not alleged to have any knowledge of the marketing, or the representations made by so-called account managers who reportedly cut contact with victims after the transfer of funds.

The statement of facts said the 42-year-old was in charge of opening and maintaining bank accounts for the company to receive and transfer deposits.

But he ran into trouble when the bank accounts were repeatedly paused and closed over concerns about fraudulent activity.

“As soon as the banks figure out we are a cryptocurrency broker, they will shut down the accounts,” Gunn wrote in an email to a colleague.

“I tried to open with over 25 banks but my error was telling them what we actually did for business.”

In February 2020, Gunn told his colleagues that more than $1.6 million was in accounts frozen by Commonwealth Bank.

On Tuesday, he faced Sydney’s Downing Centre Local Court to plead guilty to dealing with more than $100,000 in suspected proceeds of crime.

He faces a maximum penalty of three years in jail and a fine of $37,800.

The Queenslander will return to court on February 20 and is expected to be sentenced later this year.