30. March 2023 By admin Off

SEC Charges Beaxy Exchange, Founder, and Execs with Unregistered Securities

• The United States Securities and Exchange Commission (SEC) has charged Beaxy, its executives, and related companies with failing to register as a national securities exchange, broker and clearing agency.
• SEC also charges Beaxy founder Artak Hamazaspyan with raising $8 million through an unregistered offering of the Beaxy token (BXY) and misappropriation by him of $900,000 of investor funds for personal uses.
• Market makers operating on the Beaxy platform were also charged as unregistered dealers.

Beaxy Exchange Shutters After SEC Charges Founder And Execs

The United States Securities and Exchange Commission (SEC) has pressed multiple charges against Beaxy exchange and people associated with it for unregistered securities offering, failing to register in a number of capacities, and other violations. This led to the suspension of operations at Beaxy on March 28th “due to the uncertain regulatory environment surrounding our business,” as per the cryptocurrency exchange’s blog post.

Charges Against Founder Artak Hamazaspyan

The SEC is charging founder Artak Hamazaspyan for securities fraud and against him and his company Beaxy Digital for an unregistered BXY token offering. He had allegedly raised $8 million in this unregistered offering, as well as misappropriated $900,000 of investor funds for personal uses. As per his LinkedIn profile, he left Beaxy in September 2019 and is located in Yerevan-Armenia.

Charges Against Other Executives

Windy Inc., which operated the exchange after Hamazaspyan’s departure; exchange co-presidents Nicholas Murphy, Randolph Bay Abbott; chairman Brian Peterson; all companies associated with Peterson are being charged by the SEC for their respective roles in this matter.

SEC Taking Action Against Crypto Asset Intermediaries

According to Michael Selig Esq., Chair Gary Gensler from SEC said that “We allege that Beaxy and its affiliates performed the functions of an exchange, broker, clearing agency without registering with the Commission” which shows that SEC is taking action against crypto asset intermediaries like exchanges but also scrutinizing market making arrangements like broker dealerships & certain custody arrangements like clearing activity too!


In light of these charges laid out by US Securities & Exchange Commission against Beaxcy founder & other executives & related companies it has become clear that crypto industry needs to be more vigilant & adhere strictly towards regulations while dealing with digital assets or else face legal consequences!