Bitconnect Promoter Convicted for Unlicensed Financial Advice
The Sydney District Court has convicted John Bigatton, a notable promoter linked to the now-defunct cryptocurrency exchange Bitconnect, for offering unlicensed financial advice.
Between August 2017 and January 2018, Bigatton promoted Bitconnect through seminars and social media without the required financial services license, leading to his disqualification from managing corporations for the next five years.
Bitconnect, launched in 2016, offered BitConnect Coin, a digital token exchangeable for Bitcoin. Bigatton touted it in seminars, claiming it surpassed traditional term deposits and predicting its value would reach $1,000.
ASIC Deputy Chair Sarah Court criticized Bigatton’s actions, citing their negative impact on trust within Australia’s financial services sector.
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In 2020, Bigatton was banned from providing financial services for seven years by ASIC.
BitConnect founder Satish Kumbhani faced SEC fraud charges in 2021, accused of raising $2 billion illicitly. Despite court orders to repay $17 million to victims, Kumbhani’s whereabouts remain unknown as of 2024.
In 2018, ASIC secured its first digital asset freeze, targeting Bigatton’s assets, including cryptocurrencies, marking a regulatory precedent.
In May, Bigatton pled guilty to promoting BitConnect without authorization, admitting to conducting unauthorized promotional activities across Australia.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
