The Australian Securities and Investments Commission (ASIC) announced that John Bigatton, a promoter of BitConnect, has been convicted for providing unlicensed financial advice from August 2017 to January 2018. This led to a nearly five-year disqualification from managing corporations.
Bigatton promoted BitConnect through seminars and social media, promising significant returns on its token. In 2018, ASIC froze his assets, including cryptocurrency, marking a regulatory first in Australia. The U.S. SEC also sued him in 2021 for his role in a $2 billion fraud.
ASIC’s Deputy Chair emphasized that unlicensed advice undermines trust in financial services. This case highlights the necessity for proper licensing in crypto-related services under current laws.
Bigatton’s conviction serves as a crucial reminder of regulatory compliance in the burgeoning crypto market, ensuring investor protection and market integrity.
