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Australian Bitconnect is facing prison following ASIC investigation

The Commonwealth Director of Public Prosecutions has charged the former Australian national representative of BitConnect for his participation in the multi-billion-dollar crypto Ponzi scheme following an investigation by the Australian Securities and Investments Commission (ASIC).

According to the ASIC statement on Nov. 17, the commission, recommended charges against John Louis Anthony Bigatton for his role working for BitConnect from August 2017 through January 2018.

He is facing four courts of making 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, accordingly. This implies the BitConnect promoter, age 52, would be looking at a life sentence if sentenced continuously, however, Australian courts are more likely to have the sentences run simultaneously, which means he faces up to 10 years in prison.

In September, ASIC banned Bigatton from providing financial services for seven years, and said that he was “not adequately trained, or is not competent, to provide a financial service or financial services.”

Bitconnect was one of the most infamous Ponzi schemes in the crypto space.

The investigation into Bigatton’s involvement in the scheme began in 2018. Bigatton 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 opening an unrelated investigation into the disappearance of his wife, who vanished in March 2018.

This was reported by cointelegraph.com on Nov.18,2020.

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