The Australian Securities and Investments Commission (ASIC) revealed on July 15, Monday that John Bigatton, a prominent figure in the cryptocurrency realm, has been convicted for providing unlicensed financial advice related to BitConnect.
The Sydney District Court found Bigatton guilty of offering unsolicited financial guidance through seminars and social media between August 2017 and January 2018. His actions included promoting BitConnect Coin, a digital token introduced by BitConnect in 2016, which claimed to offer lucrative investment opportunities.
ASIC’s investigation highlighted that during seminars, Bigatton touted BitConnect as superior to traditional term deposits and predicted its token’s value would skyrocket to $1,000.
This misconduct led ASIC to disqualify Bigatton from managing corporations for nearly five years, underscoring the seriousness of providing unlicensed financial advice in Australia.
The regulatory scrutiny extended beyond Australia, with the US SEC previously suing BitConnect’s founder over allegations of fraudulently raising approximately $2 billion from retail investors in 2021.
ASIC Deputy Chair Sarah Court emphasized the importance of licensing in financial services, stressing that unlicensed advice deprives investors of crucial protections and erodes trust in the financial industry.
The case serves as a stark reminder that many crypto assets are regulated financial products under current Australian law, necessitating compliance with stringent licensing requirements. In a precedent-setting move in 2018, ASIC sought and obtained freezing orders over Bigatton’s assets, including cryptocurrency—a first in Australian regulatory history.
This action, reportedly freezing assets worth millions, reflects ASIC’s proactive stance amid the evolving landscape of crypto regulation in Australia. As Australia continues to refine its crypto regulatory framework, balancing innovation with investor protection, ASIC remains vigilant against fraudulent schemes.
