Immediate Shutdown of Beaxy Exchange by SEC
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Beaxy exchange for operating without registering as a national securities exchange, broker, or clearing agency. The exchange was charged with raising $8 million through the unregistered offering of its native token, BXY. The regulator also alleges that the exchange’s founder, Artak Hamazaspyan, used $900,000 for personal use, including gambling. Beaxy executives have agreed to cease operations without admitting or denying the allegations and will pay $79,200 in civil penalties. SEC chairman, Gary Gensler, has warned crypto companies that their business models must comply and adapt to the law. In March, the SEC also warned against investing in crypto assets securities, citing price volatility and lack of investor protection. The agency served Coinbase with a Wells Notice and sued Justin Sun for offering BTT and TRX as unregistered securities.
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