Tony Brown says the Japanese Super Rugby team was targeted after a perceived betrayal during voting for the 2023 hosting rights.
The Sunwolves won't take part in Rugby Australia's domestic competition set to begin in July.
With all games to be played in empty stadiums from next week,Australia's Super Rugby sides face huge financial losses.
The Brumbies ran in seven tries at Wollongong to make it four wins from five starts and will be looking to continue their fine form against the Waratahs.
The Sunwolves will need a base in Australia for the next month and the Queensland government is set to discuss the possibility of hosting them.
Officials have rearranged the Super Rugby draw so all teams,including the Sunwolves,can avoid travel to Japan.
SANZAAR is looking into where to move the round six match after Japan was considered too risky to play in.
Matches involving the Tokyo-based Sunwolves are at risk of cancellation if the coronavirus situation escalates.
The Reds had shown glimpses of magic in all three road losses to start the season but it all came together at Suncorp Stadium in a crushing 64-5 bonus point win.
Centre Te'o will be joined at the Tokyo-based team by Tonga's Onehunga Kaufusi and Australia's Jake Schatz,the Sunwolves said.
The first time Japan shocked the world wasn’t in Brighton at the 2015 World Cup. It was in Wellington in 1968.