Key Takeaways
- • Brendan Gunn, former finance director and FX/CFD industry executive, received the maximum 12-month sentence in NSW Local Court for dealing with approximately AU$181,000 in suspected cryptocurrency scam proceeds, with the sentence immediately suspended upon entering a AU$3,000 recognizance bond requiring good behaviour for 12 months.
- • The funds originated from an offshore cryptocurrency investment scam targeting Australian retail investors through Mormarkets Pty Ltd (trading as Coinshype), which Gunn directed from December 2018 and operated across 22 bank accounts at six financial institutions between January 2019 and May 2020.
- • Banks flagged multiple fraud and suspicious activity complaints regarding deposits to Mormarkets accounts; all accounts were subsequently closed by financial institutions. Gunn pleaded guilty in January 2026 to dealing with money reasonably suspected to be proceeds of crime after receiving bank cheques totaling AU$181,000 from two closed accounts.
- • The case underscores regulatory enforcement action by Australia's financial regulator ASIC against industry veterans involved in illicit crypto schemes, with significant implications for retail investor protection and compliance standards within the FX and cryptocurrency sectors.
Summary
Brendan Gunn, a longtime executive in the foreign exchange and contracts-for-difference sectors, has been sentenced to 12 months' imprisonment by the Local Court of NSW for his involvement in a cryptocurrency investment scam targeting Australian retail investors. According to ASIC, the Australian Securities and Investments Commission, Gunn was convicted of dealing with approximately AU$181,000 when it was reasonable to suspect those funds constituted proceeds of crime. The sentence, handed down on July 23, 2026, represents the maximum penalty available in summary prosecution for this offence. However, Gunn will be released immediately upon entering into a recognizance of AU$3,000 requiring him to maintain good behaviour for 12 months.
The scheme operated under Mormarkets Pty Ltd, which traded as Coinshype and solicited deposits from Australian investors for cryptocurrency and other purported investments. Gunn served as a director of the entity from December 2018 through its eventual closure. Between January 2019 and May 2020, Mormarkets opened 22 separate bank accounts across six different financial institutions. Banking partners repeatedly notified Gunn of fraud complaints and suspicious activity flagged against accounts in Mormarkets' name, yet operations continued until all accounts were ultimately closed by the financial institutions themselves.
The criminal proceeds in question originated from two closed Mormarkets accounts. When those accounts were terminated, Gunn received two bank cheques totaling AU$181,000 in investment amounts. Rather than halt operations, Gunn transferred these cheques to an associate. In January 2026, Gunn pleaded guilty to dealing with funds that were reasonably suspected of constituting proceeds of crime. His guilty plea precipitated the July 2026 sentencing.
Gunn's background as an established FX and CFD industry professional—having served as Director of Global Client Services APAC for GAIN Capital and Forex.com—makes his conviction particularly significant for the retail derivatives and cryptocurrency investment sectors. The case demonstrates ASIC's commitment to pursuing senior industry figures involved in illicit schemes and highlights the vulnerability of retail investors to fraudulent offshore cryptocurrency operations operating through domestic banking infrastructure.
The scheme operated under Mormarkets Pty Ltd, which traded as Coinshype and solicited deposits from Australian investors for cryptocurrency and other purported investments. Gunn served as a director of the entity from December 2018 through its eventual closure. Between January 2019 and May 2020, Mormarkets opened 22 separate bank accounts across six different financial institutions. Banking partners repeatedly notified Gunn of fraud complaints and suspicious activity flagged against accounts in Mormarkets' name, yet operations continued until all accounts were ultimately closed by the financial institutions themselves.
The criminal proceeds in question originated from two closed Mormarkets accounts. When those accounts were terminated, Gunn received two bank cheques totaling AU$181,000 in investment amounts. Rather than halt operations, Gunn transferred these cheques to an associate. In January 2026, Gunn pleaded guilty to dealing with funds that were reasonably suspected of constituting proceeds of crime. His guilty plea precipitated the July 2026 sentencing.
Gunn's background as an established FX and CFD industry professional—having served as Director of Global Client Services APAC for GAIN Capital and Forex.com—makes his conviction particularly significant for the retail derivatives and cryptocurrency investment sectors. The case demonstrates ASIC's commitment to pursuing senior industry figures involved in illicit schemes and highlights the vulnerability of retail investors to fraudulent offshore cryptocurrency operations operating through domestic banking infrastructure.
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