Australian John Louis Anthony Bigatton has confessed to promoting crypto lending services for a discontinued cryptocurrency exchange, BitConnect. Authorities shut down BitConnect in 2018 after accusing it of defrauding victims of more than $2.4 million.

“Mr. Bigatton provided financial product advice without holding an Australian Financial Service license or authorization to provide financial service about the lending platform,” declared the Australian Securities and Exchange Commission (ASIC) in a May 17 statement.

BitConnect launched in February 2016 and operated as both a platform and a digital currency. It shut down in January 2018 when its website and social media handles suddenly disappeared. This prompted investigation agencies to commence investigations in several countries. The founders eventually vanished with the investors’ funds. Mr. Satish Kumbhani, one of the founders of BitConnect, still needs to be added.

According to ASIC allegations, John Louis Anthony Bigatton, who served as BitConnet’s national promoter, offered product advice on six different scenarios at different locations in Australia. The locations included four seminars and two social media posts.

“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.”

BitConnect’s national promoter charged

ASIC’s first action against the Aussie BitConnect promoter was to bar him from providing financial services for seven years. “A related charge of operating an unregistered managed investment scheme was withdrawn following Mr. Bigatton pleading guilty to the charge for which he is to be sentenced.”

Investors began purchasing BitConnect coins (BCC) through the firm’s website as the company promoted the BitConnect lending platform as an investment opportunity. Investors could loan the BitConnect coins for a fixed time in return for high interest rates. Once an investor invested, they couldn’t control their loans or make withdrawals until the completion of the lending period.

According to the IRS, the platform allegedly set its operations this way as a Ponzi scheme, paying early BitConnect investors with money from later investors. The court has set the sentencing hearing for July 5.

In January 2023, the Southern Federal Court of California ordered the fraudulent scheme to compensate investors $17 million. A Group of crypto fraud victims of the BitConnect investment scheme saw some respite from the multi-billion dollar fraud scheme after a court ordered them to receive a share in $17 million restitution.

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