Acknowledging his involvement in promoting cryptocurrency lending services linked to the now-defunct crypto exchange BitConnect, an Australian individual has pleaded guilty. BitConnect, notorious for allegedly operating as a Ponzi scheme, ceased operations in 2018 amidst accusations of defrauding victims of over $2.4 billion.

The Australian Securities and Exchange Commission (ASIC) affirmed that John Louis Anthony Bigatton, in violation of regulatory requirements, offered financial product advice without possessing an Australian Financial Services license. Bigatton, identified as BitConnect's national promoter, allegedly conducted promotional activities on six occasions, including seminars held at various locations across Australia and through social media posts.

BitConnect's lending platform, marketed as an investment opportunity, enticed investors to purchase BitConnect coin (BCC) through its platform. Investors could lend BCC for a specified period, promising lucrative interest rates. However, investors relinquished control over their investments until the end of the lending period, a characteristic indicative of a Ponzi scheme, wherein early investors are paid with funds from subsequent investors.

BitConnect, operational from February 2016 until its closure in January 2018, experienced founders absconding with investors' funds. In January 2023, the U.S. District Court for the Southern District of California mandated a $17 million restitution for victims of the fraudulent scheme.

Despite legal actions, the whereabouts of BitConnect's founder, Satish Kumbhani, remain undisclosed. A sentencing hearing for Bigatton is scheduled for July 5, marking another chapter in the legal repercussions surrounding the infamous BitConnect saga.