SEC Takes Action Against Crypto Trading Platform Beaxy and Its Executives – On Wednesday, the SEC declared that charges had been brought against Beaxy, a platform for trading crypto assets, as well as its founder and executives. SEC Chairman Gary Gensler commented: “We allege that Beaxy and its affiliates performed the functions of an exchange, broker, clearing agency, and dealer 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 as a national securities exchange, broker, and clearing agency,” the securities watchdog said that it has “charged the founder of the platform, Artak Hamazaspyan, and a company he controlled, Beaxy Digital Ltd., with raising $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.”
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The regulator also “charged market makers operating on the Beaxy Platform as unregistered dealers.” According to the SEC’s complaint, Nicholas Murphy and Randolph Bay Abbot have been running the Beaxy Platform since October 2019 by managing Windy Inc. The SEC stated that the two persuaded Hamazaspyan to step down after the BXY offering.
Following the SEC enforcement action, Beaxy announced on its website: “Regrettably, we are announcing the immediate suspension of services on Beaxy Exchange. Due to the uncertain regulatory environment surrounding our business, we have made the difficult decision to cease operations.”
While emphasizing, “We forthrightly committed to cooperation with the Securities and Exchange Commission (SEC) for over two years, continually providing information, data, and interviews to assist regulators in whatever manner we could,” the company stressed: “Unfortunately, despite our best efforts, it has become clear that the regulatory environment is just too uncertain to continue operations.”