🔥 Land A High Paying Web3 Job In 90 Days LEARN MORE

Crypto platform Beaxy closes after SEC charges

283451
Crypto Platform Beaxy Closes After SEC ChargesCrypto Platform Beaxy Closes After SEC Charges

Contents

Share link:

In this post:

  • The U.S. Securities and Exchange Commission (SEC) has charged crypto platform Beaxy and its founder, Artak Hamazaspyan, with operating an unregistered exchange and brokerage.
  • A Wednesday statement from the SEC stated that Beaxy Digital Ltd. raised $8 million through the offering of its BXY token in violation of federal securities law.

The U.S. Securities and Exchange Commission (SEC) has charged crypto platform Beaxy and its founder, Artak Hamazaspyan, with operating an unregistered exchange and brokerage. According to a Wednesday statement from the SEC, Beaxy Digital Ltd. raised $8 million through the offering of its BXY token in violation of federal securities law. Additionally, the agency noted that Hamazaspyan had misappropriated over $900,000 of these funds for personal use, including gambling. As a result of these charges, Beaxy has officially closed its door.

In 2019, Windy Inc. took over Beaxy after its founder misappropriated money and Nicholas Murphy and Randolph Bay Abbott were accused by the SEC of violating securities law by operating an unregistered exchange, broker, and clearing agency. According to Gurbir S. Grewal, the SEC’s Enforcement Chief, “When a crypto intermediary combines all of these functions under one roof, as Beaxy did, investors are put at serious risk.”

He added, “The blurring of functions and the lack of registration meant that regulations designed to protect investors were not followed or even recognized by Beaxy.” As a result, the exchange suspended its operations due to the “uncertain regulatory environment surrounding our business.”

Beaxy Digital released a statement that they had cooperated with the Securities and Exchange Commission (SEC) for over two years, providing information, data, and interviews to assist regulators. However, the statement did not mention that the exchange closed under an agreement in federal court with Windy and associated persons, which included returning all assets to customers and destroying any BXY held by the latter. Also, the SEC is still pursuing Beaxy Digital and Hamazaspyan with litigation. Customers of the exchange can withdraw their assets within 24 hours after all user orders are canceled and balances are verified, and they are encouraged to do so within 30 days, according to the statement.

See also  Cambodia intensifies crypto oversight, blocks 16 exchanges including Binance, Coinbase

Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

Share link:

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Editor's choice

Loading Editor's Choice articles...
Cryptopolitan
Subscribe to CryptoPolitan