The Australian Securities & Investments Commission (ASIC) has banned former BitConnect Ponzi scheme representative, John Louis Anthony Bigatton from providing financial services for seven years.
03 September, 2020 | AtoZ Markets – Cryptocurrency scams have become a popular way for fraudsters to trick people into sending money. Fraudsters know that they can attract investors by merely promising a great return. However, regulators are trying to increase investor awareness about cryptocurrency scams, which reduce the chance of getting caught in a scam.
Former Bitconnect Representative Promoted the Cryptocurrency Ponzi Scheme
ASIC has banned John Lewis Anthony Bigatton, a former national representative of the BitConnect Ponzi scheme, from providing financial services for seven years.
The regulator said that Bigatton invited Australians to invest in BitConnect scams. From August 2017 to January 2018, Bigatton promoted the cryptocurrency Ponzi scheme, and the investment platform ended up deceiving about US$2.6 billion. As a result, many Australians lost hard-earned savings. In 2018, the BitConnect closed its platform down due to regulatory pressure. The platform also received two cease and desist orders from regulators in North Carolina and Texas.
According to the regulator, Bigatton served as Australia’s national representative for BitConnect. He provided unlicensed financial advice and engaged in misleading and deceptive practices regarding financial services and products. The regulator also said:
“Mr. Bigatton is not a fit and proper person to provide financial services. He is not adequately trained, or is not competent, provides a financial service or financial services. Moreover, he is likely to contravene a financial services law.”
Australian federal court-imposed travel restrictions and freeze his property in December 2018. Bigatton earned at least $100,000 by promoting the crypto Ponzi scheme.
Bigatton reserves the right to appeal the judgment to the Administrative Appeals Tribunal. However, ASIC’s investigation is still ongoing.
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