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20/05/24
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Australian Securities and Investments Commission Says Promoter of BitConnect Pleads Guilty
A few days ago, the Australian Securities and Investments Commission (ASIC) published a press release noting that an Australian known as John Louis Anthony Bigatton pleaded guilty to one criminal charge regarding his role as national promoter of BitConnect.
He appeared before the court and pleaded guilty to offering unlicensed financial services on behalf of another person contrary to relevant law. BitConnect was a crypto platform which provided investment opportunities and a financial product called the Lending Platform.
Those behind the platform promoted it as an investment opportunity and asked investors to acquire BitConnect Coin (BCC), a crypto token provided by BitConnect via its website.
“The Lending Platform permitted lenders to invest or “loan” BCC for fixed terms in exchange for promised high interest rates. Investors did not control their loans once invested, nor could they withdraw their capital investment until the expiry of the lending period,” reads the press release.
Bigatton used social media, face-to-face meetings, and seminars to promote activities for BitConnect and the Lending Platform. ASIC previously banned him from financial services for seven years in 2020.
“Mr Bigatton provided financial product advice without holding an Australian Financial Services licence or authorisation to provide financial services about the Lending Platform and BCC, on six instances at various locations around Australia through seminars (four) and social media posts (two),” reads the press release.
Investors lose control of their loans or are unable to withdraw their funds until after the lending period. The United States Internal Revenue Service said those behind BitConnect allegedly made it to operate like a Ponzi scheme as they paid old investors using funds provided by new investors.
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