Jarett Dunn (aka Stacc on Twitter) pleaded guilty Monday to fraud by way of an abuse of position, as well as transfer of criminal property. This comes after the Canadian national drained an estimated $2 million from Solana meme coin factory Pump.fun in May and airdropped the funds to random wallet addresses.
When Dunn attacked Pump.fun, many spectators hailed him as crypto’s Robin Hood. The meme coin launchpad is the home to countless pump-and-dump schemes, as well as a number of questionable crypto-related incidents and promotional stunts—such as someone setting himself on fire for a token.
With this, some traders were happy to see the protocol attacked by an employee, Dunn, who claimed shortly after the incident that the platform has “inadvertently hurt people for a long time.”
London’s Wood Green Crown Court heard that the defendant “dishonestly made gain” by an abuse of position at Baton Corporation Ltd., also known as Pump.fun, of which he was an employee at the time. In doing so, Dunn transferred 14,716 SOL (currently worth approximately $2.2 million) that had become illegal property as it was obtained through an abuse of his position.
Dunn stood before the judge wearing a baby blue suit jacket, a white t-shirt, and beige jogging pants as he pleaded guilty to both charges. As a result of the Solana taken from Pump.fun, the direct loss to the company is in the region of $2 million, the court heard. But the consequential loss could run as high as £10 million (nearly $12.8 million)—although how this figure was determined was not discussed.
“I might just get kicked on a plane to Canada,” Dunn told Decrypt before the hearing, in reference to the best-case scenario. “[Or] they could tell me to not touch a computer for 10 years, that would be cool too.”
The total being alleged now is 10 million quid
Qed mert Don’t count your chickens before they hatch https://t.co/Ybf0OrN3H8 pic.twitter.com/YxHFG1ecZI
— 🔥🪂staccoverflow ; j’arrête ; (@STACCoverflow) August 12, 2024
But this best-case scenario did not play out.
The judge explained that due to the severity of the crime, it is almost certain during sentencing that this case will be seen as a category 1A offense. If so, Dunn would face a minimum of seven years in prison. However, it’s possible that this may be reduced due to Dunn pleading guilty in combination with other mitigating circumstances.
“It’s difficult to see, if the prosecution is right, how we get to a sentence that isn’t immediate custody,” the judge explained at Wood Green Crown Court. During this conversation, it appeared to both Dunn and his friend from a substance recovery program that the judge was gearing up to refuse him bail.
Dunn appeared coy, looking down at the ground.
“I did a little prayer at that moment,” he told Decrypt after the fact.
Instead, the judge extended bail while adjusting the conditions to allow Dunn to more easily attend substance recovery meetings. The judge said that bail may help the defendant work to improve his mental health, which may act as a mitigating circumstance when it comes to sentencing.
At the time of the crime, Dunn told Decrypt that he had been diagnosed with schizoaffective bipolar disorder, panic disorder, and ADHD, but hadn’t been taking any medication for three months. When he was arrested, it was determined that he was unfit to face interview due to his mental health, and he was hospitalized under Section 136 of the Mental Health Act.
“There’s a psychiatric report that confirms that while I was aware of what I was doing, I was not fully aware of the illegality of my actions,” Dunn told Decrypt. “Which is true, I didn’t expect any of this to happen.”
When asked if he thinks he did the crime as a result of a mental episode, Dunn replied, “My whole life has been a mental episode, so it’s hard to tell.”
After two weeks, Dunn was released from the hospital and said he has been working to improve his mental health, including attending substance recovery meetings. One of his friends from the program, who wished to remain anonymous, explained to Decrypt that Dunn’s condition had improved significantly in the two weeks since they’d met.
Dunn stood before the judge as he summarized the hearing. The court will gather for Dunn’s sentencing in October.
“My sister doesn’t think I’ll survive in prison,” Dunn told Decrypt in the court car park, taking a drag from his cigarette. “But I’ll be fine, I’ll be fine.”
Edited by Stacy Elliott and Andrew Hayward
