If you regularly follow crypto news, then you must have come across a recent crypto news update about the Beaxy exchange that has been charged by the U.S. Securities and Exchange Commission (SEC). The allegation made by the regulator complains about the raising of $8 million by the founder of Beaxy in a crypto token offering that is not registered. SEC also alleges that he has swindled the amount of $900,000 for his own motives which included gambling. Let us know more about the matter.
Why SEC has made allegations against Beax exchange?
On 29th March Wednesday, the U.S. Securities and Exchange Commission (SEC) announced its decision in filing charges against the Beaxy exchange, the man behind its foundation, and also its executives. Gary Gensler the chairman of SEC commented by putting allegations against Beaxy and the people associated with it for performing the operations of a dealer, an exchange, a clearing agency, and a broker that too without registration with the regulatory commission and obeying transparent and time-examined rules that control those activities.
Charges against the founder
Other than allegations made against Beaxy and its executives for failing to do registration as a clearing agency, broker, or national securities exchange, the securities watchdog made allegations against Artak Hamazaspyan, the founder of the crypto trading platform, and the company he monitored, Beaxy Digital Ltd. According to SEC, he has been alleged of raising $8 million in the offering of the BXY (Beaxy token) that has not been registered.
The regulatory authority has made an allegation that Beaxy founder Hamazaspyan swindled around $900,000 for his own personal motive, in which gambling is also included. Charges were also made by SEC against the market makers for their role as unregistered dealers. In the complaint, the U.S. regulatory authority also claimed two people, Randolph Bay Abbot, and Nicholas Murphy have been running the Beaxy Platform since October four years ago via their Windy Inc. management. The U.S. SEC even thinks that these two pairs even made Beaxy founder Hamazaspyan resign after BXY’s offering.
After facing enforcement action from SEC, Beaxy company made an announcement on its website about the immediate suspension of its exchange services. Due to dark unpleasant regulatory clouds hovering over its business, the company made a pain-stricken move to stop its operations.
The company mentioned its cooperation with the U.S. SEC for 2 years and has maintained consistency in giving data, information, and interviews to help regulators in whatever possible way. Then stressing the allegations made by the regulatory body, the company admitted that the wave of the regulatory environment is unpredictable to remain consistent with the operations.
So here comes another example of the closure of exchange after FTX. The U.S. SEC has once again made charges against the Beaxy exchange, its founder Artak Hamazaspyan, and the executives. The regulatory authority charged Beaxy and its officials for performing the operations of a dealer, an exchange, a clearing agency, and a broker for raising an unregistered crypto token offering of $8 million. Log on to Cryptoknowmics to discover more topics like the COTP OTC trading platform LTD, or what are the steps for the COTP trading platform login, etc.