One of the leading promoters of the now-defunct BitConnect platform and BCC token has been charged in Australia. On Friday (July 12), John Bigatton was charged by the Sydney District Court for providing unlicensed financial advice.
If you’ve been around in the crypto scene for a while, you may very well remember this legendary meme:
Well, even if you did forget, Australian prosecutors certainly didn’t, as fresh Ponzi scheme charges were leveled at Bitconnect OG John Bigatton.
BitConnect Promoter Escapes Prison Time
Bigatton was sentenced to a three-year recognizance of good behavior. As part of his conviction, he has been disqualified from managing corporations for five years according to New South Wales court records.
Bigatton used both in-person seminars and social media to promote the BitConnect Ponzi scheme. He was extremely active during the height of BitConnect – between August 2017 and January 2018.
Bigatton promoted BitConnect through seminars and social media.
At one particular seminar, the BitConnect hype-man claimed the BCC token would increase its value to at least $1000 from $253 over a 12-month period. He also described the investment as “superior to traditional term deposits.”
BitConnect was one of the original and most high-profile Ponzi schemes in crypto.
It required investors to acquire the BCC token to unlock further investment opportunities.
One of the key ponzi ‘features’ of the BitConnect platform saw investors loaning their BCC for set periods in return for promised high interest rates.
Then, once the loans were locked in, investors had no control and could not withdraw their BCC coins until the lending period ended.
Australia’s Securities & Investment Committee Fire Warning To Future Con Artists
Today (15 July), Australia’s Securities & Investment Committee (ASIC) has released a statement regarding the case.
In it, the committee highlighted Bigatton’s disclaimers, in which he regularly stated that he was not providing financial advice.
However, the court determined that his actions constituted financial advice.
ASIC Deputy Chair, Sarah Court said in the statement, “Providing unlicensed financial advice denies Australian investors access to key protections and undermines trust and confidence in Australia’s financial services industry”.
In a warning to future Ponzi schemes, Court added, “This matter sends a clear message to Australians – that ASIC has and will act when unlicensed operators try to take advantage of Australian investors.”
In December 2018, ASIC successfully applied to the Federal Court to freeze John Bigatton’s assets. Included were his cryptocurrency holdings, a first for the regulator involving digital assets.
In 2020, ASIC had banned Bigatton from providing financial services for seven years. He pleaded guilty to one count of providing unlicensed financial advice in May 2024.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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