An Australian has admitted to advertising cryptocurrencycurrency lending services through the now-defunct BitConnect cryptocurrency exchange. BitConnect was known for allegedly operating as a Ponzi scheme, and it suspended operations in 2018 after allegations of robbing victims of more than $2.4 billion.
On May 16, 2024, he confessed before the Sydney District Court, admitting to offering unlicensed financial services on behalf of another individual, a breach of Section 911B(1) of the Corporations Act.
John Louis Anthony Bigatton, of Carss Park, New South Wales, recently pleaded guilty to a criminal charge related to his role as BitConnect’s national promoter.
BitConnect was a financial services company and an online platform for cryptocurrencycurrencies, providing investment opportunities such as the Lending Platform through its website. This website attracted investors with promises of high interest rates in exchange for their BitConnect currency (BCC) investment over a certain period.
Mr. Bigatton extensively pushed BitConnect and its Lending Platform using a variety of platforms, including social media, seminars throughout Australia, and in-person encounters with potential investors.
Notably, investors had minimal influence over their investments, with the ability to withdraw their funds once the lending period was ended.
Despite the lack of an Australian Financial Services license or permission, he gave financial product advice on the Lending Platform and BCC via seminars and social media posts on six occasions around the country.
Mr. Bigatton’s sentence hearing is scheduled on July 5, 2024. An further allegation of conducting an unregistered managed investment plan was dismissed as a result of his guilty plea.
The IRS noted, “In reality, BitConnect ran a classic Ponzi scheme, compensating early BitConnect investors with funds from later investors. Arcaro and others ensured that up to 15% of BitConnect’s investment flowed directly into a slush fund to benefit the company’s owner and promoters.”
The Commonwealth Director of Public Prosecutions is handling the issue after ASIC conducted an inquiry and referred it.
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