Man pleads guilty to promoting BitConnect crypto service in Australia without a license

Australian man John Louis Anthony Bigatton has admitted that he was involved in promoting cryptocurrency lending services for the now-defunct cryptocurrency exchange Bitconnect. Bitconnect was allegedly a Ponzi scheme that closed in 2018 and was accused of defrauding victims of more than $2.4 billion. “Mr Bigatton provided financial product advice without holding an Australian Financial Services License or authorization to provide financial services in relation to a lending platform,” the Australian Securities and Exchange Commission (ASIC) announced in a statement on May 17. ASIC said that as a national promoter of BitConnect, Bigatton provided financial product advice six times in different locations in Australia, four seminars, and two social media posts. BitConnect was launched in February 2016 and operated a platform and a digital currency before shutting down in January 2018. The founders eventually absconded with the funds, one of whom, Satish Kumbhani, is still missing. In January 2023, the Federal District Court for the Southern District of California ordered the platform to compensate investors $17 million. (Cointelegraph)