Australian Financial Watchdog Bans Local BitConnect Promoter for 7 Years

The Australian man was banned from working in financial services by the Australian Securities and Investment Commission.

AccessTimeIconSep 7, 2020 at 8:00 a.m. UTC
Updated Aug 19, 2021 at 4:10 a.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

An Australian man has received a seven-year ban by the country's financial watchdog for his involvement with BitConnect, an alleged Ponzi scheme.

  • As reported by the Financial Standard, the Australian Securities and Investment Commission (ASIC), New South Wales resident John Bigatton may not work in financial services for the multi-year period.
  • An investigation is still ongoing, per the report.
  • ASIC made the ruling after it was discovered Bigatton had engaged in misleading or deceptive conduct in promoting BitConnect.
  • Bigatton was an Australian national representative of cryptocurrency platform BitConnect, as well as its investment scheme BitConnect Lending Platform, between 2017 and 2018.
  • Over that time, the watchdog alleges Bigatton provided unlicensed financial product advice that was deceptive, misleading or likely to mislead investors, regarding the BitConnect scheme.
  • ASIC found Bigatton not to be a "fit and proper person to provide financial services," "not adequately trained" and was "likely to contravene a financial services law."
  • Bigatton now has the right to appeal ASIC's decision at Australia's Administrative Appeals Tribunal.
  • BitConnect was a cryptocurrency investment scheme that encouraged investors to exchange bitcoin for its own BitConnect Coin (BCC) promising high-interest returns.
  • It has been alleged to be a fraud in various lawsuits.
  • In January 2018, the Texas State Securities Board ordered BitConnect to cancel another planned token sale, ruling the proposed token qualified as an unregistered security.
  • Weeks later, BCC's price collapsed amid news BitConnect's lending and exchange operation was shutting down.
  • That came after state regulators issued cease and desist orders over the scheme's failure to register its services and offerings under securities rules.
  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.