John Bigatton Pleads Guilty to BitConnect Fraud
John Bigatton, one of the key promoters of the BitConnect cryptocurrency pyramid, has pleaded guilty to fraud. He confirmed that he advertised BitConnect’s unlicensed financial services through social media, held seminars across Australia, and personally met with investors, convincing them to invest money in this dubious project.
Upcoming Sentencing for Bigatton
In the near future, on July 5, the District Court of Sydney will sentence Bigatton, which may include a fine and a prison term of up to two years. BitConnect, according to many experts, is considered one of the largest cryptocurrency scams, resulting in losses of $2.4 billion.
ASIC’s Findings on BitConnect Scheme
The Australian Securities and Investments Commission (ASIC) reported that the organizers of the scheme attracted investors with promises of high fixed interest rates. Participants were offered to purchase BitConnect platform tokens, and fund withdrawals were impossible until the investment contract term was completed.
Legal Troubles for Bigatton and BitConnect
Several years ago, ASIC accused Bigatton of offering financial services without a license and demanded a seven-year ban on him providing such services. Subsequently, Bigatton was arrested for promoting BitConnect. The scheme was actively promoted worldwide since 2016, but suddenly ceased its operations in 2018, leading to investigations in several countries.
US Department of Justice Charges BitConnect Founder
In 2022, the US Department of Justice charged BitConnect founder Satish Kumbhani. The Federal Court of San Diego ruled that 800 affected investors from more than 40 countries should receive compensation amounting to $17 million.
