Key Takeaways:
- John Bigatton convicted for unlicensed financial advice related to BitConnect, receiving a five-year ban from managing corporations.
- Bigatton had previously received a seven-year ban from ASIC in 2020 for similar offenses.
- BitConnect’s founder, Satish Kumbhani, sued by the US SEC for fraudulently raising $2 billion, remains unaccounted for as of 2024.
John Bigatton has been convicted by the Sydney District Court for providing unlicensed financial advice related to the defunct cryptocurrency exchange BitConnect.
He promoted BitConnect through seminars and social media without the necessary financial services license, leading to a five-year ban from managing corporations.
John Bigatton, the Australian promoter of financial services business and #crypto platform BitConnect, has been convicted for providing unlicensed financial advice https://t.co/ph6p02lkuo pic.twitter.com/3Qquvrurff
— ASIC Media (@asicmedia) July 15, 2024
This follows an earlier seven-year ban from providing financial services issued by the Australian Securities and Investments Commission (ASIC) in 2020.
Bigatton claimed BitConnect was superior to traditional term deposits and predicted its digital token would reach at least $1,000, undermining trust in Australia’s financial services industry.
BitConnect’s founder, Satish Kumbhani, was sued by the US SEC in 2021 for fraudulently raising $2 billion from investors and remains unaccounted for as of 2024.
In 2018, ASIC froze Bigatton’s assets, including cryptocurrency holdings, marking its first such action.
Bigatton pleaded guilty in May 2024 to promoting BitConnect without proper authorization.