As a researcher with a background in financial regulation and cryptocurrencies, I find the case of John Louis Anthony Bigatton’s involvement in promoting Bitconnect a concerning one. The allegations against Bitconnect, which includes operating as a Ponzi scheme that defrauded victims of over $2.4 billion, are alarming.
An Australian man has admitted his role in marketing cryptocurrency lending offerings for the collapsed Bitconnect platform, which is notoriously linked to a Ponzi scheme. This now-dissolved exchange, under investigation since 2018, stands accused of defrauding investors out of over $2.4 billion.
“The Australian Securities and Exchange Commission (ASIC) stated that Mr. Bigatton gave financial advice about a lending platform without having the necessary license or authorization to offer financial services in Australia.”
According to the allegations made by the Australian Securities and Investments Commission (ASIC), John Louis Anthony Bigatton served as BitConnect’s national promoter and provided financial advice on six separate occasions in various places throughout Australia. This advisement was given during four seminars and through 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.”
The BitConnect lending platform was marketed as a lucrative investment prospect, enticing individuals to acquire BitConnect coins (BCC) via their website.
Investors were reportedly permitted to lend funds to BCC for a specified duration at elevated interest rates. However, they surrendered control over their loans and had no ability to retrieve their investments before the loan term expired. The structure of this arrangement is suspected by the IRS to have functioned as a Ponzi scheme, with initial BitConnect investors being paid using funds from subsequent investors.
A sentencing hearing is set for July 5.
In February 2016, BitConnect was introduced, offering a platform and its own digital currency. However, it came to a halt in January 2018, leaving investors dismayed as the founders allegedly absconded with their funds.
In early 2023, the US District Court for the Southern District of California mandated a reparation of seventeen million dollars due to a deceitful business scheme that had transpired a few years prior.
As a researcher studying the aftermath of the BitConnect investment scheme, I can tell you that some victims who fell prey to this multi-billion dollar crypto fraud found relief when a court mandated that they be allotted a portion of the $17 million restitution fund.
The whereabouts of founder Satish Kumbhani is still unknown.
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2024-05-18 08:48