As a researcher with a background in finance and experience in investigating financial crimes, I find this case particularly troubling. The involvement of John Louis Anthony Bigatton in promoting the now-defunct BitConnect crypto exchange, which is known to have operated as a Ponzi scheme, highlights the devastating consequences of unregulated financial activities.
A person from Australia has confessed to his involvement in marketing cryptocurrency lending platforms connected to the collapsed BitConnect crypto exchange. BitConnect, which had a controversial reputation, is believed to have functioned as a Ponzi scheme and was shut down in 2018 amidst accusations of defrauding investors out of approximately $2.4 billion.
John Louis Anthony Bigatton, originally from Carms Park in Barry, South Wales, has confessed to being implicated in a criminal act relating to his role as the UK representative for BitConnect.
I admitted my role in offering unauthorized financial services for another person before the Sydney District Court on May 16, 2024. This act went against section 911B(1) of the Corporations Act.
As a researcher investigating the operations of BitConnect, I’ve discovered that it functioned both as a financial services provider and an online cryptocurrency hub. Through its website, it offered attractive investment opportunities, specifically through its Lending Platform. This platform lured investors with alluring promises of substantial interest rates in return for their investment in BitConnect coin (BCC) over predetermined periods.
Significantly, investors lacked the ability to make decisions regarding their investments during the loan term, but could retrieve their initial funds upon expiration.
Mr. Bigatton vigorously championed BitConnect and its Lending Platform using diverse platforms. He employed social media, conducted seminars in Australia, and engaged in direct conversations with prospective investors.
I regret to admit that on six separate occasions, I shared investment recommendations for the Lending Platform and BCC without holding the required Australian Financial Services license or authorization. I did so through seminars and social media posts in various locations around the country.
The IRS stated, “In truth, however, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors. Arcaro and others ensured up to 15 percent of the money invested into BitConnect went directly into a slush fund to be used for the benefit of its owner and promoters.”
The sentencing for Mr. Bigatton, who admitted to running an unregistered managed investment scheme, will take place on July 5, 2024. A related charge was dismissed due to his confession.
The investigation conducted by ASIC has led to the Commonwealth Director of Public Prosecutions taking charge of the subsequent legal proceedings.
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2024-05-18 10:28