Australian Regulators Freeze Assets Belonging To BitConnect Promoter John Biggaton

Wilfred Michael 

Wilfred Michael

Reporter

08 January 2019,
11:18

A little less than one year after BitConnect, a cryptocurrency based Ponzi scheme was busted, its chief representative, John Biggaton is facing a fresh Federal Court case filed by the Australian Securities and Investments Commission (ASIC).

A report published by the local news publication AMH, on January 5, confirmed that an Australian Federal court granted ASIC the power to confiscate assets belonging to John Bigatton and also restricted him from leaving Australia until the investigation ends.

The former financial advisor is believed to have played a significant part in the BitConnect cryptocurrency scandal that hit cryptocurrency investors globally early last year by stealing $3.7 billion worth of BitConnect coins.

As per the report, John Bigatton is a director of BitConnect International, a U.K registered company used to execute the scheme. Additionally, records held by ASIC showed that he is the sole representative of the project in Australia.

Investigations into his involvement in the saga will continue in the coming days and months, but for the time being, the court order required Biggaton to provide “a list of the locations of all cryptocurrencies” held by him as well as any escrow accounts holding his crypto-assets.

 

BitConnect Ponzi Scheme Overview

Like other fraudulent cryptocurrency schemes that have emerged in recent times, BitConnect promised high returns on little investments.

Investors were caught by the snare of a 40% monthly returns on their money although they were required to make their payments in a cryptocurrency called BitConnect Coin.

When the coin disappeared from the cryptocurrency space in early 2018, it became apparent that the project founders which John Bigatton is allegedly a part of used the BitConnect coin to lock up investor funds worth around $3.7 billion.

In March 2018, John Biggaton's wife, Madeline was reported as missing at the same time when the U.S FBI opened investigations into BitConnect.

Although a memorial service for Madeline took place in May based on evidence that she may have committed homicide, the recent Federal court order requested that assets belonging to her company JB’s Investment Management be frozen too.

Investors in the fraudulent scheme continue to hope that justice prevails and possibly funds returned to them.