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US SEC shuts down Beaxy crypto exchange

The U.S. Securities and Exchange Commission charged the Beaxy crypto exchange and its executives for failing to register as a national securities exchange, broker, and clearing agency. They also added charges against Beaxy's founder, Artak Hamazaspyan, and his company for selling an unregulated security (the BXY token) and for misappropriating at least $900,000.

According to the SEC, the BXY token sale raised more than $8 million. At least $900,000 of that was misappropriated by Hamazaspyan, who used it for personal purposes, including gambling.

Some of the defendants agreed to permanent injunctions, and to pay fines of around $166,000 and disgorgement of around $62,800. The agreement also stipulates that the Beaxy platform shut down. The SEC announced they were continuing to litigate charges against Hamazaspyan for securities fraud and against Hamazaspyan and his company for the unregistered securities offering.

Theme tags: Law