TLDR
Jarett Dunn pleaded guilty to fraud and transfer of criminal property for draining $2 million from Solana meme coin factory Pump.fun.
The attack occurred in May, with Dunn airdropping the stolen funds to random wallet addresses.
Dunn faces a potential minimum sentence of seven years in prison due to the severity of the crime.
The court heard that the direct loss to Pump.fun is around $2 million, but consequential losses could be as high as $12.8 million.
Dunn claims he was not fully aware of the illegality of his actions due to mental health issues at the time of the crime.
Jarett Dunn, known online as “Stacc,” has pleaded guilty to charges related to the theft of approximately $2 million worth of Solana from the meme coin factory Pump.fun.
Dunn, a Canadian national, admitted to fraud by way of an abuse of position and transfer of criminal property. The charges stem from an incident in May when Dunn, then an employee of Baton Corporation Ltd. (operating as Pump.fun), exploited his position to siphon off 14,716 SOL tokens, currently valued at approximately $2.2 million.
The court heard that while the direct loss to Pump.fun is estimated at $2 million, the consequential damages could potentially reach as high as £10 million (nearly $12.8 million). The exact calculation of this figure was not disclosed during the hearing.
The presiding judge indicated that due to the severity of the crime, the case is likely to be classified as a category 1A offense. This classification typically carries a minimum sentence of seven years in prison. However, the judge noted that this sentence could potentially be reduced due to Dunn’s guilty plea and 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 stated, emphasizing the seriousness of the offense.
Mental Health Considerations
Dunn’s mental state at the time of the crime has emerged as a significant factor in the case. According to Dunn, he was detained under Section 136 of the Mental Health Act following the incident. He claims that while he was aware of his actions, he was not fully cognizant of their illegality.
“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.”
The court has taken these mental health considerations into account, with the judge extending Dunn’s bail to allow him to continue attending substance recovery meetings. This decision may potentially serve as a mitigating factor during sentencing.
The attack on Pump.fun sparked mixed reactions in the crypto community. Some viewed Dunn as a Robin Hood figure, given Pump.fun’s reputation as a platform for numerous pump-and-dump schemes and controversial promotional stunts. Dunn himself claimed that the platform had “inadvertently hurt people for a long time.”
Dunn’s sentencing is scheduled for October. Despite the gravity of his situation, he maintains a seemingly nonchalant attitude. “My sister doesn’t think I’ll survive in prison,” Dunn commented after the hearing. “But I’ll be fine, I’ll be fine.”
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