The U.S. Securities and Exchange Commission (SEC) has filed charges against crypto trading platform Beaxy and its executives. Additionally, the regulator alleged that the cryptocurrency exchanges founder raised $8 million in an unregistered crypto token offering and misappropriated at least $900,000 for personal use, including gambling.

The U.S. Securities and Exchange Commission (SEC) announced Wednesday that it has filed charges against crypto asset trading platform Beaxy, its founder, and its 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. The regulator also charged market makers operating on the Beaxy Platform as unregistered dealers.

In its complaint, the SEC claimed that Nicholas Murphy and Randolph Bay Abbot have been operating the Beaxy Platform since October 2019 through their management of Windy Inc. The SEC noted that the pair convinced Hamazaspyan to resign following 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.

What do you think about the SEC taking action against this crypto exchange, its founder, and its executives? Let us know in the comments section below.

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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SEC Takes Action Against Crypto Trading Platform Beaxy and Its ... - Bitcoin News