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 level Beaxy and its executives. Additionally, the regulator alleged that the cryptocurrency exchange’s laminitis raised $8 cardinal successful an unregistered crypto token offering and “misappropriated astatine slightest $900,000 for idiosyncratic use, including gambling.”

SEC Charges Crypto Exchange Platform Beaxy

The U.S. Securities and Exchange Commission (SEC) announced Wednesday that it has filed charges against crypto plus trading level Beaxy, its founder, and its executives. SEC Chairman Gary Gensler commented:

We allege that Beaxy and its affiliates performed the functions of an exchange, broker, clearing agency, and trader without registering with the Commission and complying with clear, time-tested rules governing those activities.

Besides alleging that Beaxy and its executives failed to “register arsenic a nationalist securities exchange, broker, and clearing agency,” the securities watchdog said that it has “charged the laminitis of the platform, Artak Hamazaspyan, and a institution helium controlled, Beaxy Digital Ltd., with raising $8 cardinal successful an unregistered offering of the Beaxy token (BXY).”

The SEC “alleged that Hamazaspyan misappropriated astatine slightest $900,000 for idiosyncratic use, including gambling.” The regulator besides “charged marketplace makers operating connected the Beaxy Platform arsenic unregistered dealers.”

In its complaint, the SEC claimed that Nicholas Murphy and Randolph Bay Abbot person been operating the Beaxy Platform since October 2019 done their absorption of Windy Inc. The SEC noted that the brace convinced Hamazaspyan to resign pursuing the BXY offering.

Beaxy Shuts Down

Following the SEC enforcement action, Beaxy announced connected its website: “Regrettably, we are announcing the contiguous suspension of services connected Beaxy Exchange. Due to the uncertain regulatory situation surrounding our business, we person made the hard determination to cease operations.”

While emphasizing, “We forthrightly committed to practice with the Securities and Exchange Commission (SEC) for implicit 2 years, continually providing information, data, and interviews to assistance regulators successful immoderate mode we could,” the institution stressed:

Unfortunately, contempt our champion efforts, it has go wide that the regulatory situation is conscionable excessively uncertain to proceed operations.

What bash you deliberation astir the SEC taking enactment against this crypto exchange, its founder, and its executives? Let america cognize successful the comments conception below.

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