Australian man pleads guilty for promoting defunct crypto platform.
Promoted unlicensed crypto schemes.
Promised high-yield returns out of a defunct platform.
John Bigatton, a resident of Carss Park, New South Wales, pleaded guilty on Thursday in the Sydney District Court to a charge of providing unlicensed financial services. The charge relates to his promotion of BitConnect, a defunct cryptocurrency platform that offered a high-yield investment program (HYIP).
Prosecutors allege that BitConnect operated as a ponzi scheme, attracting investors with promises of exorbitant returns on their cryptocurrency holdings. Bigatton, according to the court, admitted to promoting BitConnect’s “Lending Platform” which required users to invest in the platform’s native token, BCC, in exchange for guaranteed interest rates.
The court documents further detail that Bigatton promoted BitConnect through various means, including social media posts and seminars held across Australia. He allegedly engaged in face-to-face meetings with potential investors, persuading them to participate in the program.
Significantly, Bigatton did not possess the necessary Australian Financial Services (AFS) license to offer financial services. The court found that his promotional activities violated Section 911B(1) of the Corporations Act.
The Australian Securities and Investments Commission (ASIC) investigated Bigatton’s activities and referred the case for prosecution. The Commonwealth Director of Public Prosecutions (CDPP) is handling the case. As part of a plea bargain, a separate charge of operating an unregistered managed investment scheme was withdrawn.
Bigatton’s sentencing hearing is scheduled for July 5, 2024.
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