The Australian Securities & Investments Commission has reported that former finance director Brendan Gunn was sentenced in the Local Court of New South Wales after pleading guilty to dealing with AUD 181,000 when it was reasonable to suspect the funds were proceeds of crime. The money was suspected to be linked to an offshore cryptocurrency investment scam targeting Australians. Gunn was sentenced to 12 months imprisonment and released immediately on entering into a recognizance of AUD 3,000 requiring good behaviour for 12 months. The case related to Gunn’s role at Mormarkets Pty Ltd, trading as Coinshype, which received deposits from Australians for cryptocurrency and other purported investments. Between January 2019 and May 2020, 22 bank accounts were opened in Mormarkets’ name across six financial institutions, and banks repeatedly informed Gunn of complaints that funds in those accounts were affected by fraud or other suspicious activity. After all Mormarkets accounts were closed, Gunn received two bank cheques connected to two of the closed accounts, including investment amounts totalling AUD 181,000, and sent them to an associate. ASIC investigated the matter and referred it for prosecution to the Office of the Director of Public Prosecutions, with Gunn pleading guilty in January 2026 to contravening section 400.9(1) of the Criminal Code.
Australian Securities & Investments Commission2026-07-23
Australian Securities & Investments Commission secures sentence for former Coinshype director over AUD 181,000 in suspected scam proceeds
The Australian Securities & Investments Commission said former Coinshype director Brendan Gunn was sentenced after pleading guilty to dealing with AUD 181,000 reasonably suspected to be proceeds of crime from a cryptocurrency investment scam targeting Australians. He received a 12-month prison sentence and was released immediately on a AUD 3,000 recognizance with a 12-month good behaviour condition. The case followed an ASIC investigation into Mormarkets bank accounts that had been the subject of repeated fraud warnings from banks.