ASIC: Former Coinshype Director Sentenced Over Suspected Crypto Scam Funds

A former director of Australian cryptocurrency business Coinshype has been sentenced after pleading guilty to dealing with funds reasonably suspected to be the proceeds of crime linked to an international crypto investment scam.

The Australian Securities and Investments Commission (ASIC) said Brendan Gunn received a 12-month prison sentence, but was released immediately upon entering a 12-month good behaviour recognizance with a A$3,000 bond. The case relates to more than A$181,000 in funds connected to an offshore cryptocurrency investment scheme targeting Australian investors.

According to ASIC, Gunn served as a director of Mormarkets Pty Ltd, trading as Coinshype, from December 2018. Between 2019 and 2020, the company opened 22 bank accounts across six financial institutions to receive deposits for cryptocurrency and other investment products. Banks repeatedly alerted Gunn to customer complaints and suspected fraudulent activity linked to the accounts before eventually closing them.

When two of the accounts were shut down, Gunn received bank cheques totalling approximately A$181,000 and transferred the funds to an associate. He pleaded guilty in January 2026 to dealing with money that was reasonably suspected to be the proceeds of crime.

ASIC said the case demonstrates its continued efforts to disrupt investment scams and pursue individuals who facilitate the movement of illicit funds. The regulator noted that the prosecution followed an ASIC investigation and was conducted by the Commonwealth Director of Public Prosecutions.

The case highlights ongoing regulatory scrutiny of cryptocurrency-related investment scams and the responsibilities of company directors to respond appropriately to warning signs raised by financial institutions.