Promoter of the Bitcoins affiliate-program, BitConnect, John Bigatton, has been prosecuted for fraudulent solicitation of financial advice in Sydney without a licence. This has resulted in his being barred from managing companies for the next five years.
Similar to the experience of bitconnect who got international criticism and legal problems for offering high outcomes in the form of digital token. The case proves legislative attempts to prosecute people who violate the laws of the cryptocurrency market.
1. Conviction
John Bigatton found guilty of giving ‘financial advice’ and ‘investment tips’ without an Australian financial services licence when hawking BitConnect’s shady pyramid scheme.
2. Regulatory Action
ASIC has prohibited Bigatton from managing companies for a period of five years while stressing for licensed financial advice.
3. BitConnect’s Background
Started in 2016, BitConnect provided BitConnect Coin and experienced legal issues all over the world.
4. Global Attention
The U. S. regulators accused BitConnect’s founder of the $2 billion ‘Ponzi’ scam against the retail investors.
5. Regulatory Impact
Australia’s ASIC freezing Bigatton’s cryptocurrency froze the assets and this marked an essential precedent in Australian regulation for crypto-assets.
6. Investor Protection
The case highlights the dangers of doing it yourself investing and risky assets such as cryptocurrencies.
7. Continued Oversight
The ongoing monitoring by ASIC is to see that investment corporations comply and to safeguard investors in the continuously changing crypto markets.
