A prominent promoter of BitConnect, John Bigatton, is now under a thorough investigation by Australia’s federal court. Bigatton’s bank accounts were frozen and he was placed under a travel ban, according to The Sydney Morning Herald article on January 5.
The travel ban and frozen accounts of the promoter of the alleged $2.6 billion Ponzi scheme BitConnect is part of the investigation by the Australian Securities and Investment Commission (ASIC). ASIC is trying to look into Bigatton’s “business affairs” and how he is connected with the BitConnect exchange platform.
As reported by Coinwire in January 2018, BitConnect decided to shut down its lending and exchange site because of “continuous bad press” that led to “lack of confidence in the platform.” BitConnect also mentioned DDoS attacks and two cease and desist rulings from Texas and North Carolina authorities. This, according to BitConnect, is a hindrance to the “legal continuation of the platform.”
While the reason behind Texas and North Carolina’s orders was BitConnect’s failure to register with state securities regulators, Kentucky officials issued a temporary restraining order later that month, stating that BitConnect was “both a pyramid and Ponzi scheme.”
BitConnect, before shutting down, assured users to receive 40 percent returns per month of their BitConnect coin (BCC) holdings.
Although the Herald article confirms that Bigatton is listed as a “director and shareholder of BitConnect International Plc” and the sole representative of BitConnect in Australia, his actual role in the company is hard to pinpoint. In the UK business filings, John Bigatton is British and a 32-year old guy, which is doubtful, according to the publication. Bloomberg also reported in February 2018 that some of the names and addresses on the said filings were bogus.
Behind all these investigations is the case of Madeline, Bigatton’s wife. She disappeared at the same time the FBI started looking into BitConnect’s unlawful practices in March. Although Bigatton is not a suspect in his wife’s disappearance, the exposition of BitConnect is. The fact that she is still missing after extensive searches has led for others to believe that someone or she herself took her life. Madeline is the only director of JB’s Investment Management, which ASIC believes is connected to John Bigatton because of the initials.
Bigatton is not the only person connected to BitConnect to be investigated. In August 2018, Divyesh Darji, the alleged BitConnect India head, was arrested due to his connection in the multi-million dollar investment scam.