John Bigatton Pleads Guilty to BitConnect Fraud
John Bigatton, a prominent promoter of the BitConnect cryptocurrency pyramid, has admitted to engaging in fraudulent activities. He confessed to promoting BitConnect’s unlicensed financial services through various means, including social media, seminars, and direct meetings with potential investors.
Sentence to Be Announced on July 5
Bigatton is set to be sentenced by the District Court of Sydney on July 5. Possible penalties include fines and imprisonment for up to two years. BitConnect, labeled by many as one of the biggest cryptocurrency scams, has reportedly caused losses amounting to $2.4 billion.
ASIC’s Investigation into BitConnect
The Australian Securities and Investments Commission (ASIC) disclosed that BitConnect attracted investors with promises of high fixed interest rates. Participants were encouraged to invest in BitConnect tokens, with no possibility of withdrawal until the end of the investment term.
Previous Allegations Against Bigatton
Years ago, ASIC accused Bigatton of providing financial services without a license and sought a ban on his activities for seven years. Bigatton’s recent arrest for BitConnect promotion further escalated the legal actions against him. The scheme, operational since 2016, abruptly halted in 2018, prompting investigations globally.
Compensation for Affected Investors
In 2022, the US Department of Justice charged BitConnect’s founder, Satish Kumbhani. The Federal Court in San Diego ruled that 800 impacted investors from over 40 countries should receive a total compensation of $17 million.
