The U.S. Securities and Exchange Commission (SEC) has taken action against crypto trading platform Beaxy and its executives, alleging that they violated securities laws by operating as an exchange, broker, clearing agency, and dealer without proper registration. The regulator also charged Beaxy’s founder, Artak Hamazaspyan, and a company he controlled, Beaxy Digital Ltd., with raising $8 million through an unregistered offering of the Beaxy token (BXY), and misappropriating at least $900,000 for personal use, including gambling.
In response to the SEC’s enforcement action, Beaxy announced the immediate suspension of its services, citing the uncertain regulatory environment surrounding its business. While the company had cooperated with the SEC for over two years, providing information, data, and interviews, it stated that the regulatory environment had become too uncertain to continue operations.
The SEC’s charges against Beaxy and its executives underscore the need for crypto trading platforms to comply with securities laws and regulations, particularly when engaging in token offerings and other activities that may fall under the purview of the SEC. This enforcement action also sends a warning to other crypto exchanges and market makers to ensure they are properly registered and in compliance with applicable laws and regulations.
