March 31, 2023

SEC accuses Beaxy of floating unregistered securities

  • The site has suspended operations in the wake of this
  • Also in the regulator's crosshairs are the service's founder and another of its firms, Beaxy Digital
  • The first case involves embezzlement of client funds, while the second deals with promotion of tokenization without a license.
  • The founder of the exchange himself is overseas

Yesterday, 29 March, the Securities and Exchange Commission (SEC) issued an indictment against cryptocurrency platform Beaxy. The regulator alleges that the platform was conducting brokerage and clearing activities in the US without proper registration.

Read the official press release here. "The platform's founder Artak Amazaspyan, the new management of the exchange and another firm, Beaxy Digital, have also been targeted by the authorities.

Allegedly, this company raised $8 million by offering and promoting the BXY token, which the SEC called a derivative. In addition, Amazaspian himself is accused of embezzling $900,000 of client funds for his personal needs.

"We declare that Beaxy and its affiliates acted as an exchange, broker, clearing agency and dealer without a licence," regulator chairman Gary Gensler.

Amazaspyan himself left the trading platform back in 2019. He is now in Yerevan and has not yet commented on the SEC's accusations.

For the time being, Beaxy has suspended its operations. Apparently, this is part of the "peace agreement" to which members of the board of Windy Inc. agreed. It was this company that was overseeing the activities on the site. We previously reported that the SEC is accusing a number of US celebrities of illegally promoting TRX and BTT tokens. Among those involved in the case are Lindsay Lohan and Jake Paul.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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