ASIC Bans Former National Representative Of BitConnect From Offering Financial Services

Jyoti  |  Sep 3, 2020

The former National Representative of Bitconnect, John Louis Bigatton, has been outlawed from offering financial services for seven years, announced the Australian Securities and Investments Commission (ASIC) on September, 03.

Ponzi Investment Scheme

The online crypto platform Bitconnect used to manage its Lending Platform, which actually was a Ponzi investment scheme related to cryptocurrency. 

As per the report, the Lending Platform allegedly defrauded around $3.7 billion from the investors.

Bigatton remained the Australian National Representative of BitConnect from August 2017 to January 2018. 

While he was serving as a representative of the crypto platform, Bitconnect toppled and lost a total of $4 billion. Many of the Australian residents who had invested in it lost all their savings in that attack.

Bigatton was also popular as a ‘born salesman’ in the market, that is because he deceived the Australian consumers very easily into investing in the scam. 

Soon after Bitconnect fell apart, ASIC started its investigation against the online crypto platform.

A statement released by the Australian Regulator indicated, “Bigatton was providing unlicensed financial product advice and engaged in misleading and deceptive conduct in relation to financial services and products whilst he was the Australian National Representative of BitConnect.”

ASIC’s Request To Federal Court Of Australia

ASIC believed that Bigatton was not a suitable person for offering any kind of financial services to the investors because neither he had been trained in this nor was he competent. The Australian Regulator further mentioned that there are chances for Bigatton to go against the financial services law.  

In the year 2019, Bigatton was not allowed to travel anywhere around the world and also received the freezing orders from the Federal Court of Australia on request of ASIC.

The report further mentioned that the investigation into the matter is still not over.

Additionally, it has been stated that Bigatton is still allowed to file a petition at the Administrative tribunal for reevaluating the decision of ASIC.

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