Former BitConnect promoter pleads guilty to criminal charges

by

As a crypto investor with several years of experience in the market, I am deeply concerned about the recent developments involving John Bigatton and the BitConnect Ponzi scheme. The fact that Bigatton has pleaded guilty to providing unlicensed financial services on behalf of another person is troubling, especially considering his previous involvement with the now-defunct BitConnect platform.

John Bigatton, who previously worked for BitConnect as a promoter, admitted guilt to a single criminal offense concerning the illegal provision of financial services.

At the Sydney District Court on May 16, Bigatton confessed to offering unauthorized financial services for someone else’s benefit, infringing upon section 911B(1) of the Corpsiones Act in Australia.

BitConnect operated as both a financial services business and an online cryptocurrency platform, providing investors with the chance to invest via their website. One of their offerings was the Lending Platform, which required investors to possess BitConnect coins (BCC), a specific cryptocurrency token, in order to join.

As a crypto investor, I’ve discovered an intriguing opportunity through the Lending Platform: the ability to “lend out” BCC for predetermined periods in exchange for attractive interest rates. The allure is undeniable, but there’s a catch: once my BCC has been loaned, I relinquish control over it and cannot retrieve my capital until the lending term comes to an end.

I analyzed Bigatton’s promotional efforts regarding the now-closed BitConnect scheme. I discovered that he utilized social media, conducted seminars throughout Australia, and held individual investor meetings to advertise this Ponzi scheme. It came to my attention that Bigatton offered financial product advice without possessing an Australian Financial Services license or authorization to provide such services.

Six occurrences are said to have involved these activities, with four of them being seminars and the remaining two being social media posts.

A sentencing hearing is reportedly scheduled for July 5.

The related accusation of running an unregistered investment scheme without authorization was dropped after Bigatton admitted guilt to the main charge.

As a researcher, I would put it this way: TheCommonwealth Director of Public Prosecutions is pursuing this case after an examination by the Australian Securities and Investments Commission (ASIC) and their subsequent referral to my office.

BitConnect’s shady past

As a researcher looking into the events surrounding BitConnect, I can share that this cryptocurrency platform was closed down in the year 2018 following allegations of running a Ponzi scheme. These accusations claimed that BitConnect defrauded investors to the tune of millions of dollars by promising unusually high returns on their investments.

Beginning September 1, 2020, the Australian Securities and Investments Commission (ASIC) prohibited Bigatton from offering financial services for a period of seven years.

Following ASIC’s probe into Bigatton’s role as the Australian representative of BitConnect, a scheme that crumbled in early 2018 and swindled investors out of substantial funds, a ban has been imposed.

As a researcher studying regulatory measures, I can tell you that ASIC’s latest action is an integral component of their persistent campaign against deceitful practices in the cryptocurrency market. This initiative aims to shield investors from falling prey to cunning scams.

As a crypto investor, I was deeply affected when the Bitconnect Ponzi scheme came to light in early 2023. Unfortunately, I, too, had fallen victim to this fraudulent scheme and lost a significant portion of my investments. However, there was some good news on the horizon as the U.S. federal district court in San Diego ordered restitution for over 800 victims, including myself. The court mandated that we receive a share of the $17 million recovered from the $2.4 billion scam. This news brought a glimmer of hope amidst the disappointment and losses we had experienced.

After a California judge’s decree for the distribution of the funds, this event signifies a significant achievement in the ongoing process to reimburse those harmed by the fraudulent cryptocurrency platform.

As a crypto investor, I’d put it this way: In autumn of 2021, Glenn Arcaro, a prominent figure in BitConnect, admitted guilt to one charge of conspiring to commit wire fraud. He forfeited $56 million as part of his sentencing. Subsequently, $17 million was distributed as restitution to victims harmed by the scheme.

As a researcher uncovering recent developments in financial crimes, I’ve come across an intriguing case involving Idin Dalpour, a Manhattan resident. The FBI has reportedly discovered that Dalpour orchestrated a complex Ponzi scheme worth millions, with cryptocurrency at its heart. This deception allegedly defrauded unsuspecting investors of a staggering $43 million.

According to a news article published on May 1st, the Department of Justice disclosed that Dalpour had lured investors with enticing guarantees of substantial profits via investments in a Las Vegas hospitality venture and a cryptocurrency trading enterprise. However, it was later uncovered that these promises were unfounded.

According to the indictment, it is claimed that Dalpour ran a typical Ponzi scheme. He reportedly utilized funds from new investors to pay back earlier ones while appropriating the rest for personal expenditures, such as gambling debts and private school tuition fees. The indictment implies that Dalpour falsified contracts and financial records in an attempt to deceive investors, promising them annual returns of up to 42%.

Additional allegations point to Dalpour operating a Ponzi scheme as early as 2020, with his victim pool stretching beyond national borders. Should he be found guilty, the penalty for him could reach a maximum of 20 years’ imprisonment for committing wire fraud.

Read More

2024-05-18 19:00