A BitConnect Australia director of promotions got banned by the country’s regulator for his involvement in the crypto scam. The Australian Securities and Investment Commission banned the Australian national from working in the finance sector as we are about to find out more in our cryptocurrency news below.
The Australian Securities and Investment Commission banned the Bitconnect Australia director of promotions, John Louis Anthony Bigatton as he was working for the notorious cryptocurrency scam. He is now banned from working in the financial sector. Last year, the corporate regulator of the country cracked down on the alleged bitConnect promoter Bigatton. At that time, the court decided to freeze his accounts and assets and also placed him under a travel ban due to the ASIC’s requests.
According to the recent reports, the regulator took the situation further and banned Bigatton from operating any kind of financial service. ASIC claimed that from 2017 to January 2018, Bigatton served as the Director of Australia Promotions at BitConnect and the BitConnect Lending Platform:
“ASIC alleges that Bigatton provided unlicensed financial product advice and engaged in conduct, which was misleading, deceptive, or was likely to mislead or deceive investors.”
The financial watchdog indicated that Bigatton is not “fit and proper person to provide financial services and is now adequately trained or is not competent to provide financial services; is likely to contravene a financial service law.” Bigatton now can appeal the decision with the Administrative Appeals Tribunal.
Launched back in 2015, BitConnect Operated on high daily returns for the users that traded their bitcoins or any other cryptocurrency for the platform’s tokens on its exchange. The profits depended on the number of coins that the user had and how many people he invited to join the platform. The latter raised concerns later as the platform looked like another multi-level marketing scheme. However, the promised returns of 1% daily attracted thousands of investors by the “revolutionary algorithm” but without providing any more details, BitConnect claimed that the algorithm secure profits by purchasing BTC when the price was low and selling it when the BTC price pumped.
The BitConenct token price skyrocketed along with the growing interest of the project and BCC peaked at more than $500 reaching a total market cap of $3 billion. The authorities were starting to crack down on the project and after the popularity peak during the price increase, BitCOnnect got slapped with an Emergency Cease and Desist order from the Texas Securities Commissioner, and shortly after North Carolina followed.
BitConnect then closed the exchange which made it impossible for investors to withdraw money from the platform and then the token’s price crashed. There were hundreds of victims that filed class-action lawsuits which were combined into one later on.
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