Australian Man Pleads Guilty to Promoting BitConnect Crypto Services Without License

An Australian man, John Louis Anthony Bigatton, has pleaded guilty to charges related to promoting cryptocurrency lending services for BitConnect, a now-defunct crypto exchange accused of running a Ponzi scheme that defrauded investors of over $2.4 billion. The Australian Securities and Investments Commission (ASIC) stated that Bigatton provided financial product advice without holding the necessary licence or authorization for the lending platform. He promoted BitConnect's services at seminars and through social media posts, enticing investors with promises of high returns. BitConnect's lending platform, which operated from 2016 until its shutdown in 2018, encouraged investors to buy BitConnect coin (BCC) and loan it for fixed periods, purportedly generating high interest rates. However, it was alleged to operate as a Ponzi scheme, using funds from new investors to pay returns to earlier ones. Bigatton's sentencing hearing is scheduled for July 5. In January 2023, a U.S. court ordered a restitution of $17 million for victims of the scheme, though BitConnect's founders, including Satish Kumbhani, remain elusive.