**News Flash: Bitconnect Promoter Convicted for Unlicensed Financial Advice**
John Bigatton, a key promoter of the now-defunct cryptocurrency exchange Bitconnect, has been convicted by the Sydney District Court for providing unlicensed financial advice.
- **Promotion Period**: Bigatton promoted Bitconnect via seminars and social media from August 2017 to January 2018.
- **Regulatory Action**: The Australian Securities and Investments Commission (ASIC) highlighted that Bigatton lacked the necessary financial services license.
- **Consequences**: He is now barred from managing corporations for five years.
- **Background**: Bitconnect, founded in 2016, offered a digital token, BitConnect Coin, which Bigatton claimed would outperform traditional investments.
- **Legal History**: Bitconnect's founder, Satish Kumbhani, was sued by the US SEC in 2021 for fraud, raising $2 billion from investors.
- **Asset Freeze**: In 2018, ASIC froze Bigatton’s assets, marking a first for the regulator over digital assets.
- **Guilty Plea**: In May, Bigatton admitted to providing unauthorized financial advice, promoting Bitconnect across Australia.
ASIC Deputy Chair Sarah Court emphasized that such actions undermine trust in Australia's financial services industry.