John Louis Anthony Bigatton was claimed by the Australian Security and Exchange Commission for promoting crypto trading platforms through his four seminars and several social media posts.
An Australian resident admits to illegally promoting a nonfunction crypto-to-service provider, BitConnect. This exchange has a bad track record and operates on a Ponzi scheme. This platform shut down its operations in mid-2018 and alleged fraud against its traders for $2.4 billion.
“Mr. Bigatton provided financial product advice without holding an Australian Financial Services license or authorization to provide financial services about the lending platform,” was declared on May 17 by the Australian Securities and Exchange Commission (ASIC).
The Australian Securities and Exchange Commission (ASIC) stated that in his act as BitConnect’s national promoter, he gave financial advice on 6 different occasions.
“Mr Bigatton undertook promotional activities for BitConnect and the Lending Platform on social media, at seminars that he hosted at various locations around Australia, and through face-to-face meetings with investors.”
The purpose of this advertisement is to present BitConnect as an investment opportunity so people can purchase it through its website.
Inverters can let someone use these coins for a fixed time, in return for high interest. A restriction implemented after investment does not allow investors to withdraw money within a specified period. This will help the platform operate as a Ponzi scheme by using this money to pay previous investors, as stated by the United States Internal Revenue Service.
A hearing for this case is set for July 5.
BitConnect, also operated as a digital currency, launched in February 2016. It closed its operation in 2018 and runs with the investor’s money.
In January 2023, a few years later, the U.S. District Court for the Southern District of California ordered $17 million in restitution for the scheme.
The victims of the BitConnect scam got some relief when a court ordered $17 million in restitution to be shared among them
