Charged Aussie Bitconnect promoter faces up to 47 years in prison
IQMining platform combines Bitcoin cloud mining with daily payments and Forex margin trading, options and cryptocurrencies, giving the opportunity to multiply potential income.
The Australian could be 99-years old by the time he is released if he’s sentenced to the maximum penalty.
The Australian Securities and Investments Commission, or ASIC, has charged the former Australian national representative of BitConnect for his involvement in the multi-billion-dollar crypto Ponzi scheme.
According to a Nov. 17 statement from the ASIC, the commission — with assistance from the U.S. Federal Bureau of Investigation — has charged John Louis Anthony Bigatton for his role working for BitConnect from August 2017 through January 2018.
He faces four courts of making misleading or false statements that had an influence on market participation, one count of operating an unregistered managed investment scheme, and one count of providing unlicensed financial services.
Each charge concerning making false statements can carry a maximum penalty of 10 years in prison with the other two charges carry penalties of up to 5 and 2 years, respectively. This means the BitConnect promoter, age 52, could potentially be looking at a life sentence.
In September, ASIC banned Bigatton from providing financial services for seven years, stating he was “not adequately trained, or is not competent, to provide a financial service or financial services.”
Bitconnect was one of the biggest and most notorious Ponzi schemes in the crypto space. The project duped thousands of people into investing by offering unrealistically high returns on lending using its native token. The lending platform collected roughly $2.5 billion before shutting down in January 2018 in response to a cease-and-desist order from the Texas State Securities Board.
The investigation into Bigatton’s involvement in the scheme also began in 2018, when the Federal Court of Australia froze his assets and placed travel restrictions on the Australian national. Biggaton purportedly earned up to $100,000 through his role in the Bitconnect scam.
Biggaton’s case will return to court on February 2. Authorities are also reportedly opening an unrelated investigation into the disappearance of his wife, who vanished in March 2018.