BitConnect’s Australian promoter, John Bigatton, is getting the taste of international investigators’ for the alleged role played in a cryptocurrency Ponzi scheme. The federal court has not only frozen his assets but has also slapped a ban on his travel upon a request from the Australian Securities and Investment Commission (ASIC).
There was an allegation that the promoter is involved in the $2.6 billion digital coin Ponzi scheme taking advantage of the growing popularity of the emerging asset class.
Freezing Of Assets
The latest Australian Federal Court meant that Bigatton’s assets are frozen. This included the holdings of digital coins and in his investment management company. Interestingly, the ASIC has listed his wife, Madeline Bigatton, as the sole shareholder and director of the investment firm. However, she has been missing since March 2018, and this leads to all kinds of rumors like committing suicide or being murdered. The mystery surrounding on her disappearance continues to be there.
However, investigators appear to be not suspecting Bigatton for his involvement in his wife missing directly. At the same time, the incident came at a time when investigators are widening their ambit on the BitConnect Ponzi scheme. She seemed to have been disturbed with the involvement of her husband and was reportedly struggling. 2017 was a good year for the whole of the cryptocurrency market, and everyone was eager to take advantage of it. As a result, investors fell victims to the schemes offered by some groups.
Collapse
Bigatton is allegedly linked with the collapse of BitConnect a year ago that has also rocked the United States. Incidentally, he was a licensed financial adviser in Australia for wealth management groups. The collapse demonstrated the big amount risks associated with making of investments in the unregulated cryptocurrency market. This was evident from the series of cases filed against the company in the American courts.
At this time, we are closing the lending platform only. The BCC Exchange will work as usual and the wallet service will remain operational to hold your BCC on the website.@bitconnect @hitbtc @CoinExchangeio @livecoin_net @CoinMarketCap
— BitConnect (@bitconnect) January 18, 2018
We still expect BitConnect coin (BCC) to gain its value back and you can hold your coins in the website wallet or transfer them to a QT wallet. We are still supporting BCC to gain its value back. @bitconnect
— BitConnect (@bitconnect) January 18, 2018
The company has promised a return of a maximum of 40 percent to investors thus attracting them to invest in the scheme promoted by them. In the space of three years, they have promised a return of $50 million just for investing $1,000, according to a suit filed in Florida.
It was in January 2018 that a crash in the overall cryptocurrency market had impacted BitConnect and its fraudulent nature came to the fore. Its token, BCC, which hit a price of $440, is trading less than an American dollar. The year-long crash meant that there is every opportunity that more such cases could erupt in the upcoming period.
Currently, BitConnect still has its Twitter running with over 47 thousand followers and with the latest post on January 19, 2018. A huge number of people lost their investments, some committed suicide.
Follow us on Facebook , Twitter and Telegram
