TLDR
- Jarett Dunn pleaded guilty to fraud and transfer of criminal property
- Dunn took $2 million worth of Solana from Pump.fun in May
- He could face over 7 years in prison
- Dunn claims mental health issues played a role in his actions
- Sentencing is scheduled for October
Jarett Dunn, known online as “Stacc,” pleaded guilty on Monday to fraud and transfer of criminal property at London’s Wood Green Crown Court.
The charges stem from an incident in May when Dunn, a former employee of Pump.fun, took approximately $2 million worth of Solana (SOL) from the platform.
Pump.fun is a website used to create and launch meme coins on the Solana blockchain. The platform has been associated with pump-and-dump schemes and other controversial crypto activities.
The court heard that Dunn “dishonestly made gain” by abusing his position at Baton Corporation Ltd., which operates as Pump.fun.
He transferred 14,716 SOL, currently valued at about $2.2 million. While the direct loss to the company is around $2 million, the court was told that the total impact could be as high as £10 million (nearly $12.8 million).
Dunn appeared in court wearing a blue suit jacket, white t-shirt, and beige jogging pants. The judge indicated that due to the severity of the crime, it would likely be treated as a category 1A offense.
This classification typically carries a minimum sentence of seven years in prison, though this could be reduced due to Dunn’s guilty plea and other factors.
Before the hearing, Dunn told reporters he hoped for a best-case scenario of being “kicked on a plane to Canada” or being told not to use a computer for 10 years. However, the judge made it clear that a prison sentence was likely.
Mental health has emerged as a significant factor in the case. At the time of the incident, Dunn reported being diagnosed with schizoaffective bipolar disorder, panic disorder, and ADHD. He stated he had not been taking medication for three months prior to the event.
When arrested, Dunn was deemed unfit for interview due to his mental state and was hospitalized under 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 said.
He added, “My whole life has been a mental episode, so it’s hard to tell” when asked if he believed his actions were the result of a mental health episode.
The judge extended Dunn’s bail, adjusting the conditions to allow him to attend substance recovery meetings more easily. This decision was made to help Dunn work on improving his mental health, which may be considered during sentencing.
After the hearing, Dunn expressed confidence about potentially serving time in prison, saying, “I’ll be fine, I’ll be fine,” despite concerns from his family.
The case has drawn attention in the cryptocurrency community, with some initially hailing Dunn as a “crypto Robin Hood” for targeting a platform associated with questionable practices. However, the legal proceedings have focused on the criminality of Dunn’s actions rather than any potential motivations.
Dunn’s sentencing is scheduled for October, where the court will consider all factors, including his mental health status and guilty plea, in determining the final sentence.
