During four seminars and two social media postings, John Louis Anthony Bigatton allegedly advertised the cryptocurrency lending business, according to the Australian Securities and Exchange Commission.
A man from Australia has entered a guilty plea for his role in marketing bitcoin loan services for the notorious BitConnect crypto exchange. BitConnect was accused of operating as a Ponzi scheme and went belly-up in 2018 after victims lost over $2.4 billion.
During a statement made public on May 17, the Australian Securities and Exchange Commission (ASIC) said that “Mr. Bigatton gave financial product advice without possessing an Australian Financial Services license or authorization to provide financial services concerning the lending platform.”
According to ASIC’s allegations, John Louis Anthony Bigatton, while serving as BitConnect’s national promoter, provided financial product advice at six separate events around Australia, four seminars, and two social media postings.
“Mr. Bigatton promoted BitConnect and the Lending Platform via social media, seminars he held around Australia, and in-person meetings with investors,” the spokesperson said.
Promoting BitConnect currency (BCC) sales on the website led to investors seeing the loan platform as a promising investment possibility.
For a certain period of time, investors might lend BCC funds at excessive interest rates. Until the conclusion of the lending term, they were unable to withdraw their funds or manage their loans. U.S. tax authorities have concluded that this structure allowed the site to function as a Ponzi scheme, with first BitConnect investors being paid out of the funds of subsequent investors.
Before going dark in January 2018, BitConnect ran a platform and digital currency from its introduction in February 2016. A portion of the initial funding went missing when the founders disappeared.
The U.S. District Court for the Southern District of California imposed restitution of $17 million for the fraudulent scheme a few years later, in January 2023.
A judge authorized a group of victims of the BitConnect investment scam to receive a portion of a $17 million settlement, providing some relief from the multibillion-dollar fraud operation.
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