Beaxy Crypto Exchange Halts Operations
Beaxy crypto exchange has halted its operations following charges filed by the SEC for failing to register as a national securities exchange, broker, and clearing agency, and for the unregistered sale of BXY tokens.
Chicago-based Beaxy crypto exchange has immediately suspended its operations following multiple charges filed by the United States Securities and Exchange Commission (SEC) against the platform and its founder, Artak Hamazaspyan. According to an SEC press release, Beaxy Exchange and its executives are charged for failing to register as a national securities exchange, broker, and clearing agency. The SEC also accused the firm's founder and Beaxy Digital of raising $8 million through the sale of the unregistered BXY token.
The SEC alleges that Artak Hamazaspyan misappropriated at least $900,000 for personal use, including gambling, and charged Beaxy's market makers for operating as unregistered dealers. The complaint states that the exchange violated the Securities Exchange Act of 1934. SEC Chair Gary Gensler emphasized that the Beaxy lawsuit serves as a reminder for crypto intermediaries to comply with the law.
In response to the lawsuit, Beaxy issued a statement announcing the suspension of its services due to an uncertain regulatory environment. The exchange reassured customers that their assets on the platform were secure and that they could withdraw their funds after user orders are canceled and balances are verified, but they must do so within 30 days.
