Image default

Crypto exchange Beaxy shuts operations as SEC files charges: More inside


  • Crypto exchange Beaxy has suspended operations following a lawsuit from the U.S. SEC.
  • The SEC charged the firm and its founder with offering unregistered securities.

Chicago-based crypto exchange Beaxy has suspended its operations with immediate effect. The announcement came after the United States Securities and Exchange Commission (SEC) filed multiple charges against the trading platform and its founder, Artak Hamazaspyan.

Beaxy Digital charged with sale of unregistered security

According to a press release from the SEC, Beaxy Exchange and its executives have been charged for their failure to register as a national securities exchange, broker, and clearing agency. The SEC charged the firm’s founder, Artak Hamazaspyan, and Beaxy Digital with raising $8 million through the sale of the BXY token. The securities regulator has alleged that the token is an unregistered security. 

The financial watchdog further alleged that Artak Hamazaspyan misappropriated at least $900,000 for his personal use, which reportedly included gambling. The SEC has also charged Beaxy’s market makers for operating as unregistered dealers. The regulator’s complaint stated that the exchange had violated the Securities Exchange Act of 1934.

SEC Chair Gary Gensler said in a statement that the lawsuit against Beaxy will:

“Serve as a reminder to crypto intermediaries that their business models must comply and adapt to the law, not the other way around.”

Beaxy put out a statement following the lawsuit, informing its customers about the suspension of its services, citing an uncertain regulatory environment.

The statement read:

“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. Unfortunately, despite our best efforts, it has become clear that the regulatory environment is just too uncertain to continue operations.”

The exchange clarified that all customer assets on the platform were secure. Additionally, clients can withdraw their funds once the firm cancels user orders and verifies balances. However, they should do so within 30 days. 

This article originally appeared here.

Here’s How To Stay Up To Date On Crypto With CryptosRUs!

Learn about Bitcoin, Ethereum, and so much more at the CryptosRus Academy.

For the best exchanges, check out our top exchange guide. 

Secure your crypto with Ledger and Trade your way to victory with help from LuxAlgo

Sign up for our bi-weekly newsletter for news and exclusive analysis.

Follow CRU News Desk on Twitter for our latest articles and Twitter exclusive threads.

Stay up to date with George on Tik Tok, Instagram, and his brand new clips channel.

Source link

Related posts

zkSync and its efforts to recover 921 ETH: The how and why of it all

Marine Savard

Dappradar Report Shows Blockchain Gaming Thrived Amid FTX Collapse, Sector Accounted for 46% of All Network Activity – Bitcoin News

Marine Savard

Chainlink co-founder wants web3 to provide cryptographic guarantees to the world

Marine Savard

BTC HODLers could be in for a mid-week surprise in light of these developments

Marine Savard

Bitcoin Traders Should Check These Data As They Brace For The Next Bull Run

Marine Savard

Art Gobblers Trading Volume Surges As NFT Project Tops OpenSea

Marine Savard

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More