🌎 John Bigatton Pleads Guilty to Unlicensed Financial Services Charge

John Bigatton, a former BitConnect promoter, has pleaded guilty to a criminal charge related to providing unlicensed financial services. On May 16, Bigatton appeared before the Sydney District Court and admitted to violating section 911B(1) of Australia’s Corporations Act by offering unlicensed financial services on behalf of another individual.

BitConnect was an online cryptocurrency platform that offered investment opportunities, including a product called the Lending Platform. Investors needed to acquire BitConnect coin (BCC) to participate. The Lending Platform allowed investors to loan BCC for fixed terms in exchange for high-interest rates. However, they couldn’t control their loans or withdraw their capital until the lending period ended.

Bigatton promoted the now-defunct BitConnect Ponzi scheme on social media, in seminars across Australia, and in direct meetings with investors. He provided financial product advice without holding an Australian Financial Services license. Reports indicate these activities occurred on six occasions, including four seminars and two social media posts. A sentencing hearing is scheduled for July 5.

A related charge of operating an unregistered managed investment scheme was withdrawn following Bigatton’s guilty plea to the primary charge. The case is being prosecuted by the Commonwealth Director of Public Prosecutions, following an investigation and referral by ASIC.

BitConnect’s Past

BitConnect was shut down in 2018 after being accused of operating a Ponzi scheme that defrauded investors of millions of dollars by promising unusually high returns. On September 1, 2020, the Australian Securities and Investments Commission (ASIC) imposed a seven-year ban on Bigatton from providing financial services. This ban followed ASIC’s investigation into Bigatton’s involvement as the national promoter of the BitConnect scheme.

The ban is part of ASIC’s ongoing efforts to crack down on fraudulent activities in the cryptocurrency space and safeguard investors.

Restitution Efforts

In January 2023, a U.S. federal district court in San Diego mandated that over 800 victims of the BitConnect Ponzi scheme receive a portion of a $17 million restitution recovered from the $2.4 billion scam. The $17 million in restitution was part of the $56 million forfeited by Glenn Arcaro, a top BitConnect promoter, who was sentenced to 38 months in prison for conspiracy to commit wire fraud.

Related News

The FBI uncovered a significant financial fraud case involving Idin Dalpour, a Manhattan resident accused of orchestrating a multi-million-dollar Ponzi scheme linked to cryptocurrency. Dalpour allegedly defrauded investors of $43 million by promising high returns through investments in a Las Vegas hospitality business and a crypto trading operation. The indictment suggests Dalpour used funds from new investors to pay earlier investors and misappropriated the remainder for personal expenses. If convicted, he faces up to 20 years in prison for wire fraud.