SEC Files Charges Against Beaxy and its Executives
The US Securities and Exchange Commission (SEC) has filed a lawsuit against Beaxy and its executives for alleged unregistered activities as a securities exchange, broker and clearing agency.
Furthermore, the regulator has also filed claims against Artak Hamazaspyan, the founder of the exchange, and Beaxy Digital, which he controls, for raising $8 million in an unregistered placement of the Beaxy (BXY) token.
The SEC further alleges that Hamazaspyan misappropriated at least $900,000 of this amount, which he spent on personal purposes, including gambling, and accuses him of securities fraud.
Additionally, the SEC has settled charges against Beaxy’s market makers, Nicholas Murphy and Randolph Bay Abbott, and their company, Windy Inc., for supporting and representing Beaxy as an online trading platform for the purchase and sale of crypto assets, which were offered under the guise of securities, since October 2019.
