Right now the American watchdog of securities is going hard against violators of the law especially for bringing the crypto industry on track.
For the past couple of months, the majority of Securities & Exchange Commission’s (SEC’s) victims are mainly the crypto service providers. These include mainly the crypto trading platforms and investment entities.
The latest victim of SEC’s supervision and enforcement action is a much more popular crypto platform called ‘Beaxy’.
SEC Levels Charges against Beaxy and Its Key Officials
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It has been confirmed that SEC has officially leveled multiple charges against the crypto firm as well as its top management.
It has been alleged by SEC that Beaxy’s founder had collected revenue of more than $8 Million by selling unregistered securities in the US.
According to SEC, the founder of Beaxy took out funds from this $8 Million and spent $900,000 on his expenditures.
The official announcement of the SEC raising charges against Beaxy and officials came out in public on Wednesday.
The announcement noted that the firm as well as its founder and various officials were involved in misappropriating funds.
In this connection, SEC’s Chairman, Gary Gensler, also made a statement. In his statement, Gensler suggested that Beaxy was involved in buying, selling, and exchanging digital products comprised of ‘securities’.
He further indicated that the firm was offering the services of a broker, exchange, adviser, clearing agent, etc. He then alleged that these services are such that the entity should first come to SEC and seek proper registration.
Gensler briefed that neither Beaxy nor its management was abiding by the crystal clear rules, guidelines, and policies as provided by SEC.
Additional Charges against Beaxy
Artak Hamazaspyan is the individual who founded Beaxy.
The securities watchdog’s Chairman confirmed that charges have also been leveled against the broker’s founder.
Hamazaspyan would hence be facing the charges of misappropriation of funds amounting to more than $800,000.
He was accused of misappropriating these funds and then utilizing the same in fulfilling his desires and the habit of gambling.
SEC’s accusations further revealed that Hamazaspyan was also managing and operating a side company called ‘Beaxy Digital Ltd.’
SEC said that this entity was used by Hamazaspyan for capital raising. The funds collected under capital were to be used in launching Beaxy’s proposed native token i.e. BXY, stated SEC.
Further accusations suggested that Beaxy was also collecting charges from the market makers enlisted at its platform.
However, the firm did not enlist them as general members but allowed them to utilize services as ‘unregistered dealers’. This also, in the eyes of the SEC, is yet another blatant violation of the respective laws committed by Beaxy.
Facts Described in SEC’s Complaint
Facts mentioned in the complaint show that when Beaxy Platform was initially run by Windy Inc.’s Randolph Abbot and Nicholas Murphy. SEC is of the view that Windy Inc.’s men convinced Hamazaspyan to step down which he did.
Beaxy Is No More
By the time of this writing, Beaxy is no more as the company, on its own, decided to pack up its business and leave. The
This can be further proven by the company’s official announcement made public on its official webpage.
The relevant message noted that the company informs users regrettably that it had to close down its business forthwith. It further noted that from now on none of the users would be able to obtain Beaxy’s services.
The firm told clearly that it was due to the non-conducive environment created by the regulator concerned that forced Beaxy into closure.
They wanted to operate like the rest of the companies but they find the environment to be very hostile and aggressive. Therefore, they feel that the condition is not favorable for their business.
Based on the above assessment, the company decided that it was time to move on and go with a different approach.