John Bigatton, a promoter of the crypto platform BitConnect, was convicted by a district court in one of Australia’s biggest cities, Sydney, for providing unlicensed financial advice.
Though found guilty of violating section 911B(1) of the Corporations Act 2001, Bigatton was released on a “recognisance to be of good behaviour for three years”.
Judge Newlinds SC condemned Bigatton’s actions as a breach of trust, noting that recipients of his advice were entitled to expect guidance from a licensed and regulated professional.
The court emphasised that those promoting financial products for profit must diligently understand and comply with the law. Violations of these laws are criminal offences, and offenders should anticipate stern penalties upon conviction.
BitConnect operated as an online crypto platform and financial services business, requiring investors to acquire BitConnect Coin to participate. According to the Australian Securities and Investments Commission (ASIC), between August 2017 and January 2018, Bigatton promoted BitConnect across Australia through seminars and social media. The regulator claimed that Bigatton’s seminars included bold claims that BitConnect Coins would soar in value to at least 1,000 U.S. dollars and that the platform was superior to traditional term deposits.
ASIC noted that Bigatton’s actions were conducted without the required financial services licence. Thus, as part of his conviction, he would be disqualified from managing corporations for the next five years.
ASIC Deputy Chair Sarah Court highlighted the significance of the case, stating,
“Providing unlicensed financial advice denies Australian investors access to key protections and undermines trust and confidence in Australia’s financial services industry. ASIC is committed to taking action against the unlawful promotion of high-risk digital assets to protect Australian investors.”
This news came amid rising concerns about the risks associated with gambling using cryptocurrencies in the continent country. The Australian government reportedly enforced a ban on using credit cards and digital currencies for online betting on June 11. Companies failing to comply with these regulations faced potential fines of up to approximately 234,750 Australian dollars (155,000 US dollars).
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