The former Australian national representative of Bitconnect faced with prison. In fact, The commonwealth Director of Public Prosecution charged him with 2-10 years in jail. The reason is that he involved in the multi-billion-dollar crypto Ponzi scheme. In fact, The penalty implemented after the investigation of Australian Securities and Investments Commission (ASIC). “Australian Bitconnect promoter jailed” is among the hottest news in cryptocurrency world.
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2-10 years in jail for Bitconnect promoter
The ASIC announced in Nov. 17 that John Louis Anthony Bigatton faced with 2-10 years in jail. In this investigation the ASIC collaborated with the U.S. Federal Bureau of Investigation, which resulted in prison Bigatton due to his involvement in Bitconnect from August 2017 to January 2018.
Bigatton facing four different courts of false statement or making misleading, which influenced on market participation. The first is providing unlicensed financial services. The second is operating unregistered managed investment scheme.
Making false statement can carry the penalty of maximum 10 years in jail. In addition, the other two charges have the penalty of over 5 and 2 years. Bigatton is around 52 years old. It means that he has to spend his rest of life in prison. The Australian courts are trying to run the sentences at the same time. As a result, Bigatton will spend over 10 years of his life in jail.
It was in September that ASIC banned Bigatton for seven years. In fact, he banned from providing financial services. The reason was that he is not eligible and trained to provide such those services.
Australian Bitconnect Promoter Jailed; What is Bitconnect?
Bitconncet known as one of the largest and famous Ponzi schemes in cryptosphere. Thousands of victims invested their hard-earned money into this project. In fact, the promoters of the project were promising unrealistic high returns to the investors. The profit paid by a native token, which belonged to the project.
However, the platform could raise over $2.5 billion, it shut down in January 2018. In fact, the Texas State Securities Board shut down the scheme.
The investigations began in 2018. The Federal Court of Australia banned Bigatton from traveling and froze his accounts and assets as well.