Crypto Exchange Beaxy Accused Of Failing To Register In SEC Lawsuit

Key Points:

• Beaxy has officially shuttered its doors after the Securities and Exchange Commission accused the firm and its founder of running an unregistered exchange and brokerage.
• The SEC also charged Beaxy Digital Ltd. for fraudulently raising $8 million in an unregistered securities offering using its BXY cryptocurrency.
• The exchange announced on its website that it was ceasing operations.

The Securities and Exchange Commission (SEC) accused crypto exchange Beaxy and numerous executives and connected organizations on Wednesday of failing to register.

Beaxy has officially shut down after the Securities and Exchange Commission accused the company and its creator, Artak Hamazaspyan, of running an unregistered exchange and brokerage. It is the latest in a surge of enforcement activities against the crypto sector of the SEC.

The SEC charged Beaxy Digital Ltd. for fraudulently raising $8 million in an unregistered securities sale using its BXY cryptocurrency. Moreover, the agency said that Hamazaspyan misappropriated at least $900,000 for personal purposes, including gambling.

The agency further said that executives Nicholas Murphy and Randolph Bay Abbott had enabled trade on the Beaxy platform via the firm they control, Windy Inc, since October 2019. As a result, the SEC accuses them of breaching securities law by running an unregistered exchange, broker, and clearing agency, despite the fact that the platform was labeled as dead in another SEC lawsuit last year.

According to the SEC, another executive, Brian Peterson, and his firms supplied market-making services for the Beaxy platform while functioning as unregistered dealers.

The exchange said on its website that it was halting operations due to the unclear regulatory climate in which they operate.

Consumers may withdraw their assets within 24 hours when all user orders are canceled, and balances are validated, and they are advised to do so within 30 days.

SEC Chair Gary Gensler has regularly chastised digital asset enterprises for carrying out several business activities that, in his opinion, should be carried out by different organizations. Gensler has urged companies to divide and register their multiple activities.

The statement makes no mention of the fact that it closed under a federal court arrangement with Windy and the persons involved with that firm. The deal called for Windy to refund all assets to consumers and “delete” any BXY in its hands. Beaxy Digital and Hamazaspyan are still being sued by the SEC.

According to the SEC, Hamazaspyan will dispute accusations of securities fraud and conduct an unregistered offering in court.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News