US regulator SEC, cryptocurrency platform beaxy and its directors for allegedly failing to register as an exchange, broker or clearing house. This is the latest news amid ongoing widespread pressure on crypto firms operating in the United States.
Chicago-based Beaxy Digital Ltd. also SEC by BXY token He is accused of fraudulently raising $8 million through unregistered sale of securities. In addition, the SEC accuses founder Artak Hamazaspyan of misusing $900,000 worth of funds for personal use, including gambling.
Along with Artak, two other directors, Nicholas Murphy and Randolph Mr. Abbott, are also included in the case because they oversee a company called Windy, which is responsible for maintaining Beaxy. According to the SEC’s allegations, Windy violated securities laws by trading on the Beaxy platform without registering as an exchange, clearinghouse or broker.
Beaxy Shut Down Services
After the lawsuit from the SEC, it was announced that all operations were stopped with the announcement made on the website. According to the company, the main reason for this shutdown is the uncertain regulatory environment. The BXY token was also negatively impacted by this news, leaving its investors facing challenges.
Speaking about the ongoing pressure on various crypto firms, including Beaxy, SEC chairman Gary Gensler said:
This case reminds crypto brokers once again that their business model must comply and comply with the law, not the other way around.
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