Crypto Exchange Beaxy Shuts Down Due to Pressure from SEC

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Beaxy ceased operations on March 28 due to the “uncertain regulatory environment.” The next day, the SEC charged Beaxy and its executives for failing to register as a national securities exchange, broker, and clearing agency.

The SEC further alleged that Beaxy and Artak Hamazaspyan, its founder, raised $8 million through an unregistered offering of the Beaxy token (BXY) and misappropriated $900,000 of investor funds for personal use.

In addition, the SEC charged the market makers operating on the Beaxy platform as unregistered dealers. SEC Chair Gary Gensler declared 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.”

Litigation against Hamazaspyan for securities fraud and against Hamazaspyan and Beaxy Digital for the unregistered BXY offering is now underway; Hamazaspyan is located in Yerevan, Armenia, according to his LinkedIn profile.

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