I just saw that John Bigatton, the Australian promoter of BitConnect, was sentenced to three years in prison. This isn’t the first time I’ve heard about this guy, but the case is pretty serious: he was promoting that cryptocurrency scam offering impossible returns, something many fell for.

What’s interesting is that John Bigatton claimed that BitConnect would rise from $253 to $1,000 in a year. Of course, investors couldn’t even access their money until the term ended. Basically, a classic Ponzi scheme. The court ruled that it was unlicensed financial advice, so he was hit pretty hard: a five-year ban from managing businesses, crypto asset freezes, and more.

What surprises me most is that Australian regulators (ASIC) had to go to the Federal Court to freeze Bigatton’s assets. It was the first time they involved digital assets in such a proceeding. It says a lot about how the crypto industry was completely unregulated at that time.

John Bigatton pleaded guilty in May, but this case has been ongoing for years. BitConnect collapsed a while ago, leaving many people burned. At least now there are legal consequences for those promoting these scams. Do you think this will discourage other promoters of similar schemes, or is it just a drop in the ocean?