SEC Sues Beaxy for Operating an Unregistered Securities Platform

Was regularly engaged in the business of effecting transactions for the account of others in crypto assets that were offered and sold as securities, and thus should have registered as a broker. While Murphy, Abbott, Windy, and Peterson neither denied nor accepted the SEC allegations, the parties agreed to carry out certain actions, which includes closing down the Beaxy platform and ceasing the operations of an unregistered exchange, clearing agency, and a broker. The Securities and Exchange Commission accused Beaxy and several of its executives Wednesday of operating as an unregistered broker, exchange and clearing agency.

• The SEC has been ramping up enforcement against larger participants in the crypto industry.
• The Beaxy executives agreed to cease the operations without admitting or denying the allegation.
• The Securities and Exchange Commission also accused the exchange’s founder of misappropriating customer money.

The complaint, filed in a federal court in Chicago, comes as the SEC has been ramping up enforcement against larger participants in the industry, including most recently notifying Coinbase Global Inc. of … Trade Bitcoin and over 30 other cryptocurrencies on Beaxy, a U.S. exchange with a personalized approach. Cryptocurrency firm Beaxy has suspended operations amid criminal charges by U.S. regulators. Please also note that data relating to the above-mentioned cryptocurrency presented here are based on third party sources. They are presented to you on an “as is” basis and for informational purposes only, without representation or warranty of any kind. Links provided to third-party sites are also not under Binance’s control.

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Beaxy is a centralized cryptocurrency exchange established in 2017 and is registered in United States. Currently, there are 6 coins and 6 trading pairs available on the exchange. Beaxy 24h volume is reported to be at $0.00, a change of 0% in the last 24 hours.

Binance CEO Changpeng Zhao said the charges are “an unexpected and disappointing civil complaint” in response to the CFTC lawsuit filed on Monday against him and the world’s largest crypto exchange. Marine holds a Master’s Degree in International & Transnational Law from Chicago-Kent College of Law, Illinois Institute of Technology. As an experienced lawyer and a researcher at Kent University, she is skilled at networking and negotiations and finds significant interest in both cryptocurrency and blockchain technology. Since cryptocurrency is a relatively young field, there are not many lawyers with an overlapping knowledge of these two disciplines. Marine has helped to identify experienced crypto-attorneys, who then joined the team.

Securities and Exchange Commission charged the company and its founder, Artak Hamazaspyan. With operating an unregistered exchange and brokerage, the agency said Wednesday in a statement. Beaxy founder Artak Hamazaspyan is also accused of unlawfully raising $8 million in an unregistered securities offering of its native token, BXY. According to the SEC complaint, Hamazaspyan embezzled $900,000 of the funds for personal use, which included gambling. Windy, a company managed by Nicholas Murphy and Randolph Bay Abbott, provided the Beaxy Platform as a web-based trading platform that facilitated buying and selling of crypto assets that were offered and sold as securities.

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In the past few months, a number of https://forexhero.info/ firms have been hit with civil lawsuits, as U.S. regulators crack down on the budding industry. Most notably, cryptocurrency giant FTX collapsed last year and its founder Sam Bankman-Fried was charged with fraud. The SEC’s charges against Beaxy and its executives raise serious concerns about the transparency and accountability of cryptocurrency exchanges. As regulators continue to scrutinize the crypto industry, more exchanges and other crypto-related companies may face legal issues if they fail to comply with regulations designed to protect investors.

The U.S. regulator alleged that the founder of Beaxy used $900,000 for personal use including gambling. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. NEW YORK, March The U.S. Securities and Exchange Commission charged crypto firm Beaxy.com and several executives for registration failures on Wednesday, expanding regulators’ push to rein in the industry. The SEC said is litigating its charges against Hamazaspyan for securities fraud and against Hamazaspyan and Beaxy Digital for the unregistered BXY offering.

Beaxy Platform

Contact our customer service agents that are ready to provide assistance in a timely manner. The Beaxy executives agreed to cease the operations without admitting or denying the allegation. The U.S. Securities and Exchange Commission has filed a lawsuit against the Beaxy exchange, shutting down its operations. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.

U.S. based alternative asset custodian KingdomTrust has partnered with Beaxy to provide enhanced security and custodianship of assets while SaaS company Mati is onboarded to provide robust KYC and AML services. The markets watchdog is also suing Beaxy’s founder, Artak Hamazaspyan, for securities fraud. The company raised $8 million through offering its own crypto token, BXY, and Hamazaspyan allegedly misappropriated $900,000 for gambling and other uses, the SEC alleged in a Wednesday statement. Launched on 10 June 2019, Beaxy Exchange is a centralized exchange headquartered at The Board of Trade in Chicago, Illinois. The exchange supports 6 fiat pairs, a two-way fiat ramp, credit and debit card purchases, and spot cryptocurrency trading.

Get the latest crypto news, updates, and reports by subscribing to our free newsletter. Citi’s report suggests that the next wave of crypto adoption will be driven by the rise of central bank digital currenci… The SEC claimed that Beaxy violated the Securities Exchange Act of 1934 because it brought together the orders for securities of multiple buyers and sellers using established non-discretionary methods under which such orders interacted.

Fresh off of an eight million dollar fundraise, Beaxy intends to use these funds to expand operations in the U.S, expand into Europe, and integrate fiat deposits and withdrawals from around the globe. It also charged founder Artak Hamazaspyan with raising $8 million in an unregistered offering of the token BXY and misappropriating at least $900,000 for gambling and other personal use. The SEC also said it was charging Beaxy founder Artak Hamazaspyan and Beaxy Digital, a company he controls, with raising $8 million through an unregistered offering of the Beaxy token and the misappropriation by Hamazaspyan of $900,000 of investor funds for personal uses.

Funds held on our platform are secured by Curv Institutional Custody and USD deposits are backed by FDIC insurance up to $250,000. Move in and out of major cryptocurrencies and take advantage of global price discrepancies with USD, EUR, GBP, JPY, CAD, and AUD. In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. On Monday, the Commodity Futures Trading Commission sued Binance, accusing the world’s largest crypto exchange of violating rules preventing illegal activity. “This case serves as yet another reminder to crypto intermediaries that their business models must comply and adapt to the law, not the other way around,” SEC Chair Gary Gensler said in a statement.

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. Separately, the agency said it had reached a settlement with the individuals currently managing Beaxy, Nicholas Murphy and Randolph Bay Abbott. They took over the platform from Hamazaspyan, and operated it — still without registering — through their company Windy Inc., the SEC said in its statement.

Why are you interested in Beaxy?

Beaxy noted that the exchange cooperated with the SEC for more than two years but said the uncertain regulatory landscape made it difficult for the platform to keep functioning. Trading has been halted, and users are advised to withdraw their assets within 30 days. According to the director of the agency’s division of enforcement, Gurbir Grewal, Beaxy’s alleged lack of distinction between the three functions was risky for investors. Once your wallet is setup, you can login to your binance account and proceed to the Buy & Sell crypto webpage to buy the Ethereum. If you are not an existing user, you can refer to our How to Buy Ethereum guide on registering and buying your first cryptocurrency on Binance.

The SEC has beaxy crypto trading platform Beaxy for not registering as a national securities exchange, broker or clearing agency. It also alleges that Beaxy founder Artak Hamazaspyan raised $8 million in an unregistered offering of the Beaxy token and used at least $900,000 for personal use. Market makers operating on Beaxy were also charged as unregistered dealers. Beaxy suspended operations on March 28 “due to the uncertain regulatory environment surrounding our business,” according to the cryptocurrency exchange’s blog. The suspension came a day before the United States Securities and Exchange Commission announced it was charging Beaxy and its executives with failing to register as a national securities exchange, broker and clearing agency.

• According to an official press release, the SEC alleges that Beaxy operated without registering as a national securities exchange, broker, or clearing agency.
• For all of the activities they were conducting, the SEC alleges that Windy should have registered as an exchange, but also as a clearing agency, as well as a broker.
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The company’s founder, Artak Hamazaspyan, and a company he controlled, Beaxy Digital, were also charged with raising $8 million in an unregistered offering of Beaxy tokens , with Hamazaspyan misappropriating at least USD $900,000 for personal use. Windy Inc. took over the platform in 2019 after the founder misappropriated money, according to the SEC, and managers Nicholas Murphy and Randolph Bay Abbott maintained Beaxy for trading crypto assets “that were offered and sold as securities,” the SEC said. So the agency is also accusing them of violating securities law by operating an unregistered exchange, broker and clearing agency, though the platform was described as defunct in another SEC case last year.

The encounters with other exchanges had left him frustrated, which ended up being the motivation to create Beaxy. According to an official press release, the SEC alleges that Beaxy operated without registering as a national securities exchange, broker, or clearing agency. The charges filed in Chicago federal court expand a crackdown by U.S. prosecutors and regulators on alleged abuses in the digital asset industry. The SEC is litigating the securities fraud charges against Hamazaspyan and against him and Beaxy Digital, Ltd., the company he controlled before it was taken over by Windy, for the unregistered offering of the BXY token. SEC Chair Gary Gensler has frequently admonished digital asset firms for conducting multiple business operations that he says should normally be separate companies. Gensler has called on companies to break up and separately register their various operations.

Proprietary traders, hedge funds and investment banks can leverage the built-in capabilities of OneTick for quantitative research, transaction cost analysis, surveillance and back-testing. Beaxy aims to create the ultimate all-in-one cryptocurrency exchange, with more tools at your disposal than ever before, and a user experience that is unmatched. A convenient, secure, all-in-one platform that helps to facilitate a world where cryptocurrencies are as accessible as fiat currencies. For all of the activities they were conducting, the SEC alleges that Windy should have registered as an exchange, but also as a clearing agency, as well as a broker.