Crypto Exchange Beaxy Shuts Down Operations Post-SEC Charges

• The SEC has filed charges against Artak Hamazaspyan, the company’s founder.
• The crypto exchange declared through a website post that it will be closing immediately.

The cryptocurrency platform Beaxy and its management are facing accusations from the Securities and Exchange Commission (SEC) for allegedly failing to register as an exchange, broker, or clearing agency. The finance regulator has taken another step in its unprecedented onslaught on US cryptocurrency businesses.

Beaxy Digital Ltd., situated in Chicago, was also accused by the SEC of fraud for obtaining $8 million via the sale of unregistered security represented by the BXY token. The SEC has filed charges against Artak Hamazaspyan, the company’s founder, accusing him of using $900,000 for his own purposes.

Uncertain Regulatory Environment

The complaint named Artak and two other executives, Nicholas Murphy and Randolph Bay Abbott, for their roles in overseeing Windy, the business responsible for managing Beaxy. The SEC claims that Windy violates the law by engaging in commerce on the Beaxy platform without first registering as an exchange, clearing agency, or broker.

Due to the “uncertain regulatory environment surrounding our business,” the cryptocurrency exchange declared through a website post that it will be closing immediately after the complaint was filed. As a direct result, investors’ confidence in the platform’s native coin, BXY, has plummeted.

When the exchange has closed all active orders and confirmed balances, consumers have 24 hours to withdraw their monies, according to an official statement from Beaxy.

On the other hand, Binance, a cryptocurrency exchange, has been charged with breaking U.S. trading and derivatives regulations by the Commodities Futures Trading Commission (CFTC). On March 27th, a complaint was filed alleging that the cryptocurrency exchange had provided derivatives trading services to clients in the United States without first obtaining the necessary derivatives license.

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