Key Insights
- Australian promoter of BitConnect convicted for providing unlicensed financial advice between 2017-2018.
- Bigatton faces a three-year good behavior bond, five-year corporate management ban, and seven-year financial services prohibition.
SYDNEY (MarketsXplora) – John Bigatton, the Australian promoter of the defunct cryptocurrency platform BitConnect, has been convicted by the Sydney District Court for providing unlicensed financial advice, in violation of the Corporations Act 2001.
Bigatton pleaded guilty on May 16, 2024, to one count of providing unlicensed financial advice. He was released on a recognizance to be of good behavior for three years.
Between August 2017 and January 2018, Bigatton promoted BitConnect, a financial services business and online crypto platform, through seminars and social media without proper authorization. At these events, he made bold claims about BitConnect Coin’s potential value and compared it favorably to traditional investments.
BitConnect offered investment opportunities through its Lending Platform, requiring investors to acquire BitConnect Coins. Investors would “loan” these coins for fixed terms in exchange for promised high interest rates, with no control over their investments until the lending period expired.
The Australian Securities and Investments Commission (ASIC) took action against Bigatton in December 2018, successfully freezing his assets, including crypto holdings valued in the millions. This marked ASIC’s first instance of obtaining freezing orders over digital assets.
Following ASIC’s discontinued proceedings in March 2020, the Australian Federal Police initiated ongoing proceedings under the Proceeds of Crime Act in the Supreme Court of New South Wales.
As a result of his conviction, Bigatton faces a five-year disqualification from managing corporations. Additionally, ASIC imposed a seven-year ban on Bigatton from providing financial services, effective September 1, 2020.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.
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