John Louis Anthony Bigatton, a prominent Australian promoter, has admitted to promoting BitConnect’s cryptocurrency lending services without a proper license. BitConnect, which shut down in 2018, was an infamous Ponzi scheme that defrauded investors of more than $2.4 billion. Bigatton, who served as BitConnect's national promoter in Australia, provided financial product advice at seminars and through social media without holding an Australian Financial Services license.
The Australian Securities and Investments Commission (ASIC) accused Bigatton of misleading investors, encouraging them to purchase BitConnect coins (BCC) and invest in the lending platform with promises of high returns. The scheme was designed to lock investors' funds for fixed periods, making it impossible to withdraw until the lending period ended. The IRS described the platform as operating by paying early investors with funds from new investors.
BitConnect’s downfall came after its founders disappeared with investors' money. In January 2023, the U.S. District Court for the Southern District of California ordered $17 million in restitution for victims of the fraudulent scheme. Despite BitConnect’s closure, the whereabouts of its founder, Satish Kumbhani, remain unknown. Bigatton’s sentencing hearing is scheduled for July 5.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
