• The U.S. Securities and Exchange Commission (SEC) has filed charges against crypto trading platform Beaxy and its executives.
• The SEC alleged that the cryptocurrency exchange’s founder raised $8 million in an unregistered crypto token offering and „misappropriated at least $900,000 for personal use, including gambling.“
• Following the SEC enforcement action, Beaxy announced on its website that it had to suspend services due to a “difficult decision” caused by an uncertain regulatory environment.
SEC Takes Action Against Crypto Trading Platform Beaxy and Its Executives
The U.S. Securities and Exchange Commission (SEC) has filed charges against crypto trading platform Beaxy and its executives for failing to register as a national securities exchange, broker, and clearing agency. Additionally, the regulator alleged that the cryptocurrency exchange’s founder raised $8 million in an unregistered crypto token offering and „misappropriated at least $900,000 for personal use, including gambling.“
Charges Against Beaxy Founder
The SEC also charged Beaxy’s founder Artak Hamazaspyan with raising funds through an unregistered offering of the Beaxy token (BXY). Furthermore, they alleged that he misappropriated at least $900,000 from these funds for personal use such as gambling.
Charges Against Unregistered Market Makers
The regulator also charged market makers operating on the Beaxy Platform as unregistered dealers. The SEC claimed Nicholas Murphy and Randolph Bay Abbot have been operating the platform since October 2019 through their management of Windy Inc., which convinced Hamazaspyan to resign following the BXY offering.
Beaxy Suspends Services
Following this news from the SEC enforcement action, Beaxy announced on its website: “Regrettably, we are announcing the immediate suspension of services on Beaxy Exchange.“ They stressed that they had cooperated with SEC regulators but due to uncertain regulatory environment surrounding their business it became clear they had no choice but to cease operations immediately.
Conclusion
In conclusion ,the U.S Securities and Exchange Commission (SEC) has taken action against crypto trading platform Beaxy and its associated executives by filing charges against them for not registering as a national securities exchange or broker-dealer firm . Additionally ,the SEC accused their found Artak Hamazaspyan of raising funds through an unregistered offering of tokens(BXY)and misusing atleast 900K dollars from these funds for personal use like gambling .Due to all these allegations ,Beaxysuspended all of its services due to uncertain regulatory environment