US SEC Files Charges Against Crypto Trading Platform Beaxy: Here's Why

US SEC Chairman Gary Gensler alleged that the crypto trading firm and its top executives did not register as a national securities exchange, broker, and clearing agency.

Following the SEC actions, the firm announced the immediate suspension of services on the Beaxy Exchange.

The US Securities and Exchange Commission (SEC) on Wednesday registered charges against crypto trading firm Beaxy and executives at the company. In an official statement, the regulator said the founder of the organisation Artak Hamazaspyan raised $8 million through an unregistered crypto token offering, reported Bitcoin. com. It said the company and its founder indulged in the misappropriation of around $900,000 for their personal reasons, which included gambling. SEC Chairman Gary Gensler said, "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."

Gensler also alleged that the crypto trading firm and its top executives did not “register as a national securities exchange, broker, and clearing agency.” The SEC has levelled charges of operating the Beaxy Platform as unregistered dealers.

The SEC said in its official statement that it has also 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, denoted by BXY.

Notably, the regulator has alleged that Hamazaspyan misappropriated at least $900,000 for personal use, including gambling. 

The SEC also said in its complaint that Nicholas Murphy and Randolph Bay Abbot had been engaged in the functioning of the Beaxy Platform since October 2019 in various manners. This included their methods of management of Windy Inc.

The SEC documents also revealed that they tried to convince Hamazaspyan into resigning after the BXY offerings.

What Has Beaxy Said On This?

After the actions by the  SEC, Beaxy on its website, said, "Regrettably, we are announcing the immediate suspension of services on Beaxy Exchange."

It further said it was forced to make the difficult decision to stop the operations because of the uncertain regulatory climate surrounding its business.

The company further said, "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.”

However, it expressed regrets that the regulatory environment was just too uncertain to function. It added that the current situation arose despite their best efforts to operate.

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