Beaxy Exchange suspends operations after the US SEC charges

Beaxy Exchange suspends operations after the US SEC charges

By Charles Thuo - min read
  • The US SEC has filed several charges against the Beaxy Exchange.
  • The exchange has consequently suspended operations
  • In its defence, Beaxy has said that it committed to cooperation with the SEC for over two years.

US-based cryptocurrency exchange Beaxy Exchange suspended its operations immediately after the United States Securities and Exchange Commission (SEC) filed multiple charges against the exchange and its founder Artak Hamazaspyan.

The US regulatory authorities including the SEC seem to have gone full throttle in their crackdown on cryptocurrency platforms. SEC’s lawsuit against Beaxy comes just a few days after Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO Changpeng ‘CZ’ Zhao.

The exchange in a statement issued after the SEC lawsuit said:

“We forthrightly committed to cooperation with the Securities and Exchange Commission (SEC) for over two years, continually providing information, data, and interviews to assist regulators in whatever manner we could. Unfortunately, despite our best efforts, it has become clear that the regulatory environment is just too uncertain to continue operations.” 

SEC sues Beaxy for the sale of an unregulated security

According to a press release issued by the US SEC, Beaxy Exchange and its executives have been charged for failing to register as a national securities exchange broker and clearing agency for the sale of BXY token.

Beaxy Exchange has raised about $8 million through the sale of BXY token, which the SEC alleges is an unregistered security.

The SEC further alleges that Beaxy’s founder Artak Hamazaspyan misappropriated about $900K for his personal use, allegedly including gambling. In addition, the SEC says that Beaxy’s market makers for operating as unregistered dealers.

According to the SEC, the exchange has violated the Securities Exchange Act of 1934.