John Bigatton, the Australian promoter of the defunct ponzi scam platform BitConnect, has been convicted in the Sydney District Court for providing unlicensed financial advice.

Bigatton was sentenced to three years and banned from managing corporations for five years on Friday, according to court records and a statement from the country's corporate regulator on Sunday.

From August 2017 to January 2018, Bigatton promoted BitConnect through seminars and social media, providing financial advice without proper authorization.

Cryptocurrency Ponzi scheme

BitConnect, which requires investors to purchase BitConnect Coin (BCC) to participate in its investment opportunities, was promoted by Bigatton with promises of high returns.

Investors can invest or lend BCC for certain periods of time in exchange for promised high interest rates.

Once invested, they have no control over their loans and cannot withdraw funds until the loan term ends, according to a statement from the Australian Securities and Investments Commission (ASIC).

John Bigatton and wife

At a conference, Bigatton claimed that BCC would increase in value by at least $1,000 from $253 within a year and described the investment as superior to traditional time deposits.

The court highlighted Bigatton's disclaimers, which said his advice was not financial. However, the court determined that the nature of his actions was financial advice.

“Providing unlicensed financial advice denies Australian investors access to important protections and undermines trust and confidence in the Australian financial services industry, ” ASIC Vice President Sarah Court said in a statement on Sunday.

In 2018, ASIC successfully asked the Federal Court to freeze Bigatton's assets, including his cryptocurrency holdings, marking the first time the regulator had involved a digital asset. digital.

These proceedings, currently overseen by the Australian Federal Police under the Asset Recovery Act, remain ongoing in the Supreme Court of New South Wales.

Bigatton was banned from providing financial services for seven years by ASIC in 2020. He pleaded guilty to one count of providing unlicensed financial advice in May.


Source: https://tapchibitcoin.io/nha-quang-ba-bitconnect-john-bigatton-bi-ket-an-tai-uc.html