Australian BitConnect promoter guilty of unlicensed advice

The Sydney District Court convicted John Bigatton, the Australian promoter of BitConnect, for providing unlicensed financial advice, which violated the Corporations Act 2001.

Released on a three-year good behaviour bond, Bigatton promoted BitConnect, an online crypto platform, through seminars and social media from August 2017 to January 2018 without proper authorisation.

The Australian Securities and Investments Commission’s (ASIC) Deputy Chair, Sarah Court, emphasised that unlicensed advice undermines investor protections and trust in Australia’s financial services.

Bigatton had made claims during his seminars, predicting that BitConnect Coins would soar to USD$1,000 and asserting that BitConnect was superior to traditional term deposits.

Judge Newlinds SC noted that the breach involved a violation of trust, as attendees expected regulated advice.

The court warned that those promoting financial products for profit must understand and comply with legal requirements, as breaches can lead to criminal charges and severe penalties. The case was prosecuted by the Commonwealth Director of Public Prosecutions following ASIC’s referral.

Attribution: the Australian Securities and Investments Commission (ASIC).