Lachlan Morganti, 26, pleaded guilty in Ballarat Magistrates Court on Tuesday to the theft of more than $64,000 from the online fundraiser in April.
Morganti helped launch a GoFundMe page for the family of 21-year-old Hannah McGuire, whose body was found in a burnt-out car in Scarsdale, about 25km south of Ballarat, on April 5.
Her former partner Lachlan Young, 21, has been charged with her murder and has pleaded not guilty.
Hannah McGuire's body was found in a burnt-out car near Ballarat. (Con Chronis/AAP PHOTOS)
The fundraising campaign raised $64,541.75, but Hannah's mother Debbie McGuire never saw a cent in her account.
"Not only did the accused violate our trust, but he had a complete disregard for and betrayal of the trust and generosity of an entire community," Ms McGuire said told the court.
"Instead of the focus being on Hannah's devastating circumstances of her death, it was diverted elsewhere."
Ms McGuire faced Morganti as she spoke on Monday, after opting to read her victim impact statement from the witness box.
"One of the community members described the accused as 'vile' at the time; I thought it was harsh," she said.
"However, after some thought, I don't think I could describe his behaviour any other way."
Debbie McGuire said her family won't be able to spend the money raised in the way they intended. (James Ross/AAP PHOTOS)
Morganti struggled with mental health issues and a gambling addiction since the age of 18, the court was told.
At the time the funds hit his account in April, he had blown $10,000 of his superannuation to repay payday loans he had used to punt with.
The court was told Morganti initially decided to gamble a portion of the raised funds to recoup previous losses, but within four or five days the entire amount was gone.
Magistrate Michelle Mykytowycz said the theft was a massive breach of trust.
"It is probably one of the most self-indulgent acts of greed that I've ever had to deal with in the Magistrates Court," she said.
"It's like placing a child in a lolly shop, unattended, and that's what he's done."
The theft hit hard in the tight-knit community of Ballarat, where Hannah McGuire was one of three women killed in alleged violent attacks at the start of the year.
Three women's violent deaths hit the Ballarat community hard. (James Ross/AAP PHOTOS)
"We won't ever be able to spend the money in the way we intended. It's gone, and we'll never get it back," her mother told the court.
Ms McGuire said she felt heartbroken for those who contributed financially when they felt helpless and didn't know what else they could do for her family.
"All I can say to them is I'm sorry," she said.Â
"I have faith in our judicial system and I believe the accused will be given a sentence ... that is considerate of the impact of the theft on our family and community."
GoFundMe says it has refunded all donors to the fundraiser.
"We take protecting Australian generosity very seriously," a spokesman said in a statement.
"Our team is in contact with the McGuire family and will continue to liaise with them, and authorities, as required."
Morganti, who remains on bail, will return to the court for his sentence on October 1.
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