Australian Federal Court Freezes Bitconnect’s Promoter Funds and Bans Him From Traveling



Last Updated: January 9, 2019 at 5:22 AM EST
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John Bigatton, Director and Shareholder of BitConnect International Plc, a cryptocurrency exchange that was shut down in 2018, has been banned from traveling. An Australian court also froze his funds in order to enable ASIC, Australia’s corporate watchdog conduct its investigation.

U.S. Authorities Label BitConnect a Ponzi Scheme

John Bigatton is part of the promoters of BitConnect which was labeled as a Ponzi scheme in 2018. The exchange was closed down due to a series of legal actions against the company by its investors. The shutdown can also be attributed to law officials categorizing the company’s digital currency as securities.

Reports reveal that BitConnect investors were promised immense returns within a short period of time. Also, a legal action filed in Florida noted that the exchange made claims that investors can turn $1,000 into $50 million within three years. Bigatton is also quoted in a video to have said BitConnect is “exactly the stock market in its early days except it’s the stock market on steroids, it’s the stock market times 10”.

BitConnect Promoter Gets Tangled in Authorities Net

Aside BitConnect, the promoter is linked to another business, JB Investment Management whose funds have been frozen. The said company is registered under Mr. Bigatton’s wife, Madeline Bigatton who has been missing since May 2018. In this case, Bigatton has not been implicated in her disappearance.

Reports reveal that there are suspicions that she may have fled or taken her life, however, searches are still being carried out to find her. It was also said that her 2017 Kia Sorento was found in an area in the country. But then, she was nowhere to be found after a search by helicopter was carried out by the authorities.

Court Issues Order to Disclose Bank Accounts and Location of Funds

Michael Gleeson, the Federal Court justice on ASIC’s request mandated Mr. Bigatton to disclose the details of his bank account. Other than having his account frozen, the court has ordered the former Director to reveal the locations where his cryptocurrencies are held. This also includes escrow accounts that may be holding any virtual currencies.

Several individuals in the crypto community are facing legal actions for one reason or the other. In an earlier report, BTCNN revealed that Nistor Vlad Călin the CEO of Coinflux, a cryptocurrency exchange had been extradited to the U.S. from Romania. The CEO allegedly had dealings with a group of Romanians who illegally got funds from U.S Citizens.