- BitConnect platform promoter John Bigatton received a 5-year ban for managing firms.
- The BitConnect platform crashed in 2018, causing significant losses to users in Australia.
Australian Defunct platform BitConnect’s former promoter was convicted on Friday at a District Court in Wales, Sydney. John Bigatton was found guilty of providing unlicensed financial advice during the span of August 2017 to January 2018. He is currently sentenced to a three years of ‘good behavior recognizance’ and a five-year ban for managing firms.
Bigatton promoted the BitConnect platform on his social media and seminars without any authorized license from Australian regulatory bodies. The Australian Securities & Investments Commission (ASIC), following his promotions, applied to the Federal Court to freeze the former promoter’s assets including his crypto holdings in 2018.
Moreover, the ASIC’s Monday statement regarded the incident as an example for the citizens to understand the Commission’s duty to ensure safe trading. Additionally, they stated that the case is a ‘reminder’ that services relating to crypto assets that are financial products in Australia require a license.
Notably, the court statement quoted that due to John Bigatton’s exceptionally strong subjective case, the offender is conditionally released ‘upon the condition that he enters into a recognizance, self in the sum of $100 without security.’ This is substituted for the original punishment, 2 years imprisonment for the white-collar crime. The reduction in punishment is a result of his good conduct, said the judge.
The District Court stated:
“people who get involved in the promotion of financial products as part of a business for profit…need to be scrupulous in finding out for themselves what the law is and then to abide by that law.”
Additionally, Bigatton was seen making several statements that promoted BitConnect. It later turned out to be a scam and is currently defunct as aforementioned.
What Happened With Bigatton-Promoted BitConnect?
BitConnect, established in 2016 became one of the largest and first digital assets scams in Australia. The firm included an exchange platform called Lending Platform. Users could use Bitcoin to exchange for BitConnect coins on the Lending Platform for set periods. After the period they were promised higher returns and interest rates.
However, in January 2018, the exchange denied users access to their funds and officially crashed. Meanwhile, Bigatton was observed indicating statements such as ‘BitConnect coins would increase in value up to $1000.
Relatedly, in H1 2024 several cryptocurrency scams were reported and observed in the market. Prominent firms faced hacks while on the other hand, regulators enhanced their scrutiny on the sector.
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