The Australian promoter of the now-defunct cryptocurrency exchange platform BitConnect, has been found guilty of providing unlicensed financial advice. 

The Australian Securities and Investments Commission (ASIC) says promoter John Bigatton was accused of offering unsolicited financial advice while promoting BitConnect through seminars and social media between August 2017 and January 2018. As a consequence, ASIC has barred Bigatton from managing corporations for five years.

BitConnect, established in 2016, launched a digital token named BitConnect Coin. 

This token could be exchanged for bitcoin, enabling participation in BitConnect's investment schemes. 

During promotional seminars, Bigatton claimed that BitConnect was superior to any term deposit available and predicted that BitConnect Coins would increase in value to at least $1,000.

In 2020, ASIC had already prohibited Bigatton from providing financial services for seven years due to his activities related to BitConnect.

“Providing unlicensed financial advice denies Australian investors access to key protections and undermines trust and confidence in Australia’s financial services industry,” says ASIC Deputy Chair Sarah Court.

The US Securities and Exchange Commission (SEC) recently sued BitConnect's founder in 2021 for allegedly orchestrating a scheme to fraudulently raise about $2 billion from retail investors.

ASIC has reiterated that many crypto assets are considered financial products under current law, requiring services related to them to hold an Australian financial services licence.