The US Securities and Exchange Commission (SEC) has filed charges against cryptocurrency trading platform Beaxy and its executives. Furthermore, the regulator alleged that the founder of the cryptocurrency exchange raised $8 million in an unregistered crypto token offering and “misappropriated at least $900,000 for personal use, including gambling.”
SEC Accuses Cryptocurrency Exchange Beaxy
The US Securities and Exchange Commission (SEC) Announced on Wednesday that he filed charges against crypto asset trading platform Beaxy, its founder and its executives. SEC Chairman Gary Gensler commented:
We allege that Beaxy and its affiliates performed the functions of stockbroker, broker, clearinghouse, and dealer without registering with the Commission and complying with clear and proven rules governing those activities.
In addition to alleging that Beaxy and its executives failed to “register as a national stock exchange, broker and clearing agency,” the securities regulator said it has “indicted the platform’s founder, Artak Hamazaspyan, and a company he controlled , Beaxy Digital Ltd., with the raising of $8 million in an unregistered offering of the Beaxy token (BXY).”
The SEC “alleged that Hamazaspyan misappropriated at least $900,000 for personal use, including gambling.” The regulator also “indicted market makers operating on the Beaxy platform as unregistered dealers.”
In its complaint, the SEC asserted that Nicholas Murphy and Randolph Bay Abbot have been operating the Beaxy Platform since October 2019 through their management of Windy Inc. The SEC noted that the pair convinced Hamazaspyan to resign following the offer of BXY.
Beaxy goes out
Following the SEC enforcement action, Beaxy announced on its website: “Unfortunately, we are announcing the immediate suspension of services on the Beaxy Exchange. Due to the uncertain regulatory environment surrounding our business, we have made the difficult decision to cease operations.”
While emphasizing: “We have been directly committed to cooperating with the Securities and Exchange Commission (SEC) for more than two years, continually providing information, data and interviews to assist regulators in any way we can,” the company emphasized:
Unfortunately, despite our best efforts, it has become clear that the regulatory environment is too uncertain to continue operations.
What do you think about the SEC taking action against this crypto exchange, its founder, and its executives? Let us know in the comments section.
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