John Bigatton promoted the fraudulent scheme on social media and through seminars.
He pled guilty to promoting financial services products without any licence.
A viral promotional event of BitConnect
BitConnect’s national promoter in Australia, John Bigatton, pled guilty to his role in promoting the scam after three and a half years of his indictment. He promoted the fraudulent cryptocurrency scheme on social media, hosted seminars across the country, and had face-to-face meetings with victims, persuading them to invest in the scheme.
Bigatton pled guilty to a criminal charge of offering unlicensed financial services before the Sydney District Court on 16 May and will receive his sentence on 5 July. He is facing a monetary penalty as well as jail time of up to two years.
A $2.4 Billion Crypto Scam
BitConnect was one of the largest cryptocurrency scams, duping investors of about US$2.4 billion globally. The scheme lured victims with absurdly high fixed interest rates.
The investment structure offered by BitConnect
As the Australian Securities and Investment Commission (ASIC) detailed, the fraudulent scheme even offered a lending platform which was promoted as an investment opportunity. Investors needed to acquire the platform’s native BitConnect coin to participate in the investment scheme. Investors could invest or loan these tokens for promised fixed returns.
However, the platform did not allow the investors to withdraw any of their loan amounts until the expiry of the lending period.
BitConnect promoted its scheme heavily in 2016 and 2017 globally. The scheme incentivised invites and referrals to grow its network of investors or, rather, victims. The crypto scheme suddenly evaporated in 2018, with the disappearance of its websites and social media handles, leading to investigations by agencies in several countries.
Promoting BitConnect in Australia
Bigatton, the Australian promoter of the scheme, promoted BitConnect locally in the country. According to ASIC, he promoted the scheme, its lending platform, and tokens. He conducted four seminars across the country and promoted the scheme with two social media posts.
“A related charge of operating an unregistered managed investment scheme was withdrawn following Mr Bigatton pleading guilty to the charge for which he is to be sentenced,” the regulator noted.
Last year, a San Diego federal district court ordered the distribution of over $17 million in restitution among 800 victims of BitConnect across over 40 countries.
BitConnect’s national promoter in Australia, John Bigatton, pled guilty to his role in promoting the scam after three and a half years of his indictment. He promoted the fraudulent cryptocurrency scheme on social media, hosted seminars across the country, and had face-to-face meetings with victims, persuading them to invest in the scheme.
Bigatton pled guilty to a criminal charge of offering unlicensed financial services before the Sydney District Court on 16 May and will receive his sentence on 5 July. He is facing a monetary penalty as well as jail time of up to two years.
A $2.4 Billion Crypto Scam
BitConnect was one of the largest cryptocurrency scams, duping investors of about US$2.4 billion globally. The scheme lured victims with absurdly high fixed interest rates.
The investment structure offered by BitConnect
As the Australian Securities and Investment Commission (ASIC) detailed, the fraudulent scheme even offered a lending platform which was promoted as an investment opportunity. Investors needed to acquire the platform’s native BitConnect coin to participate in the investment scheme. Investors could invest or loan these tokens for promised fixed returns.
However, the platform did not allow the investors to withdraw any of their loan amounts until the expiry of the lending period.
BitConnect promoted its scheme heavily in 2016 and 2017 globally. The scheme incentivised invites and referrals to grow its network of investors or, rather, victims. The crypto scheme suddenly evaporated in 2018, with the disappearance of its websites and social media handles, leading to investigations by agencies in several countries.
Promoting BitConnect in Australia
Bigatton, the Australian promoter of the scheme, promoted BitConnect locally in the country. According to ASIC, he promoted the scheme, its lending platform, and tokens. He conducted four seminars across the country and promoted the scheme with two social media posts.
“A related charge of operating an unregistered managed investment scheme was withdrawn following Mr Bigatton pleading guilty to the charge for which he is to be sentenced,” the regulator noted.
Last year, a San Diego federal district court ordered the distribution of over $17 million in restitution among 800 victims of BitConnect across over 40 countries.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
X Open Hub’s CEO, Michal Copiuk, on the developments of AI
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CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024
CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024
CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024
CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024
FX and CFDs in Africa: Key Industry Trends | FMAS:24
FX and CFDs in Africa: Key Industry Trends | FMAS:24
As Africa joins the global financial markets, its unique economy fuels forex and CFD trading innovation. Discover growth drivers: tech advancements, regulations, and increased financial education for African traders. See how these factors enhance trading accessibility, transparency, financial inclusion, and opening new investment opportunities. Learn about the digital transformation's impact on trading –the role of technology, social platforms, and automated systems in democratizing market access.
SPEAKER: Christoforos Panagiotou, Africa Regional Manager at Fxview @Fxview
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As Africa joins the global financial markets, its unique economy fuels forex and CFD trading innovation. Discover growth drivers: tech advancements, regulations, and increased financial education for African traders. See how these factors enhance trading accessibility, transparency, financial inclusion, and opening new investment opportunities. Learn about the digital transformation's impact on trading –the role of technology, social platforms, and automated systems in democratizing market access.
SPEAKER: Christoforos Panagiotou, Africa Regional Manager at Fxview @Fxview
#fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors
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Asset Allocation & Trading in a Lower Interest Rate Environment | FMAS:24
Asset Allocation & Trading in a Lower Interest Rate Environment | FMAS:24
Traditional investment paradigms shift in a lower interest rate environment, compelling investors to reassess their asset allocation and trading strategies. This scenario prioritizes diversification beyond conventional bonds and equities. Investors should adapt by seeking assets with the potential for higher yields, considering global markets, and employing dynamic trading strategies that leverage short-term market fluctuations, all while managing risk more meticulously to safeguard returns.
SPEAKER: Roger Eskinazi, Managing Partner at Tickmill South Africa
#fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors
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Traditional investment paradigms shift in a lower interest rate environment, compelling investors to reassess their asset allocation and trading strategies. This scenario prioritizes diversification beyond conventional bonds and equities. Investors should adapt by seeking assets with the potential for higher yields, considering global markets, and employing dynamic trading strategies that leverage short-term market fluctuations, all while managing risk more meticulously to safeguard returns.
SPEAKER: Roger Eskinazi, Managing Partner at Tickmill South Africa
#fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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