Crypto Exchange Beaxy Shuts Down Amid SEC Charges

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Get the latest crypto news, updates, and reports by subscribing to our free newsletter. Citi’s report suggests that the next wave of crypto adoption will be driven by the rise of central bank digital currenci… The SEC claimed that Beaxy violated the Securities Exchange Act of 1934 because it brought together the orders for securities of multiple buyers and sellers using established non-discretionary methods under which such orders interacted.

murphy and randolph

As PYMNTS reported, that suit seeks to ban Binance from operating in the U.S. Beaxy allegedly acted as an intermediary in making payments and deliveries upon matching sell and buy orders, maintained custody of customer assets, and should have registered as a clearing agency. He has worked 10 years in software development with experience in C#, ASP.NET MVC, WebForms, C++, HTML, CSS, XML, JavaScript, JQuery, ExtJS and many other JS based libraries with databases, such as SQLSERVER, MySQL, Cassandra, Redis, MemCache, and MongoDB. Artak has prior experience in leading a business and his reliability and amiable personality has laid the foundation for company culture at Beaxy. As technology changes, so does the product roadmap, and he is up for the challenge in keeping the team ahead of the curve. This, combined with his involvement in the community, put him in a unique position to understand the challenges and obstacles that competing exchanges are faced with.

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Proprietary traders, hedge funds and investment banks can leverage the built-in capabilities of OneTick for quantitative research, transaction cost analysis, surveillance and back-testing. Beaxy aims to create the ultimate all-in-one cryptocurrency exchange, with more tools at your disposal than ever before, and a user experience that is unmatched. A convenient, secure, all-in-one platform that helps to facilitate a world where cryptocurrencies are as accessible as fiat currencies. For all of the activities they were conducting, the SEC alleges that Windy should have registered as an exchange, but also as a clearing agency, as well as a broker.

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beaxy noted that the exchange cooperated with the SEC for more than two years but said the uncertain regulatory landscape made it difficult for the platform to keep functioning. Trading has been halted, and users are advised to withdraw their assets within 30 days. According to the director of the agency’s division of enforcement, Gurbir Grewal, Beaxy’s alleged lack of distinction between the three functions was risky for investors. Once your wallet is setup, you can login to your binance account and proceed to the Buy & Sell crypto webpage to buy the Ethereum. If you are not an existing user, you can refer to our How to Buy Ethereum guide on registering and buying your first cryptocurrency on Binance.

SEC Strikes Again, Shutting Down Crypto Exchange With Immediate Effect

In the past few months, a number of crypto firms have been hit with civil lawsuits, as U.S. regulators crack down on the budding industry. Most notably, cryptocurrency giant FTX collapsed last year and its founder Sam Bankman-Fried was charged with fraud. The SEC’s charges against Beaxy and its executives raise serious concerns about the transparency and accountability of cryptocurrency exchanges. As regulators continue to scrutinize the crypto industry, more exchanges and other crypto-related companies may face legal issues if they fail to comply with regulations designed to protect investors.

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. Separately, the agency said it had reached a settlement with the individuals currently managing Beaxy, Nicholas Murphy and Randolph Bay Abbott. They took over the platform from Hamazaspyan, and operated it — still without registering — through their company Windy Inc., the SEC said in its statement.

  • As PYMNTS noted, Wells notices are not formal charges or lawsuits, but often lead to them.
  • Binance CEO Changpeng Zhao said the charges are “an unexpected and disappointing civil complaint” in response to the CFTC lawsuit filed on Monday against him and the world’s largest crypto exchange.
  • The company’s founder, Artak Hamazaspyan, and a company he controlled, Beaxy Digital, were also charged with raising $8 million in an unregistered offering of Beaxy tokens , with Hamazaspyan misappropriating at least USD $900,000 for personal use.
  • For example, if you use TrustWallet wallet, you can go to 1inch to make the transaction.

The company’s founder, Artak Hamazaspyan, and a company he controlled, Beaxy Digital, were also charged with raising $8 million in an unregistered offering of Beaxy tokens , with Hamazaspyan misappropriating at least USD $900,000 for personal use. Windy Inc. took over the platform in 2019 after the founder misappropriated money, according to the SEC, and managers Nicholas Murphy and Randolph Bay Abbott maintained Beaxy for trading crypto assets “that were offered and sold as securities,” the SEC said. So the agency is also accusing them of violating securities law by operating an unregistered exchange, broker and clearing agency, though the platform was described as defunct in another SEC case last year.

Crypto Exchange Beaxy, Founder Sued by SEC for Violations

Contact our customer service agents that are ready to provide assistance in a timely manner. The Beaxy executives agreed to cease the operations without admitting or denying the allegation. The U.S. Securities and Exchange Commission has filed a lawsuit against the Beaxy exchange, shutting down its operations. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. is a centralized cryptocurrency exchange established in 2017 and is registered in United States. Currently, there are 6 coins and 6 trading pairs available on the exchange. Beaxy 24h volume is reported to be at $0.00, a change of 0% in the last 24 hours.

Get insights and exclusive content from the world of business and finance that you can trust, delivered to your inbox. District Court of the Northern District of Illinois in Chicago, contains eight counts against Hamazaspyan, Murphy, Abbott and Peterson, as well as companies Windy Inc., Beaxy Digital, Braverock Investments, Future Digital Markets, Windy Financial and Future Financial. Jesse Hamilton is CoinDesk’s deputy managing editor for global policy and regulation.

Beaxy Fouder Misappropriated Nearly $1M in Investor Funds

Fresh off of an eight million dollar fundraise, Beaxy intends to use these funds to expand operations in the U.S, expand into Europe, and integrate fiat deposits and withdrawals from around the globe. It also charged founder Artak Hamazaspyan with raising $8 million in an unregistered offering of the token BXY and misappropriating at least $900,000 for gambling and other personal use. The SEC also said it was charging Beaxy founder Artak Hamazaspyan and Beaxy Digital, a company he controls, with raising $8 million through an unregistered offering of the Beaxy token and the misappropriation by Hamazaspyan of $900,000 of investor funds for personal uses.

The U.S. regulator alleged that the founder of Beaxy used $900,000 for personal use including gambling. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. NEW YORK, March The U.S. Securities and Exchange Commission charged crypto firm and several executives for registration failures on Wednesday, expanding regulators’ push to rein in the industry. The SEC said is litigating its charges against Hamazaspyan for securities fraud and against Hamazaspyan and Beaxy Digital for the unregistered BXY offering.

Securities and Exchange Commission charged the company and its founder, Artak Hamazaspyan. With operating an unregistered exchange and brokerage, the agency said Wednesday in a statement. Beaxy founder Artak Hamazaspyan is also accused of unlawfully raising $8 million in an unregistered securities offering of its native token, BXY. According to the SEC complaint, Hamazaspyan embezzled $900,000 of the funds for personal use, which included gambling. Windy, a company managed by Nicholas Murphy and Randolph Bay Abbott, provided the Beaxy Platform as a web-based trading platform that facilitated buying and selling of crypto assets that were offered and sold as securities.

broker and clearing

U.S. based alternative asset custodian KingdomTrust has partnered with Beaxy to provide enhanced security and custodianship of assets while SaaS company Mati is onboarded to provide robust KYC and AML services. The markets watchdog is also suing Beaxy’s founder, Artak Hamazaspyan, for securities fraud. The company raised $8 million through offering its own crypto token, BXY, and Hamazaspyan allegedly misappropriated $900,000 for gambling and other uses, the SEC alleged in a Wednesday statement. Launched on 10 June 2019, Beaxy Exchange is a centralized exchange headquartered at The Board of Trade in Chicago, Illinois. The exchange supports 6 fiat pairs, a two-way fiat ramp, credit and debit card purchases, and spot cryptocurrency trading.

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By doing so, the complaint alleges that Peterson and the Braverock Entities acted as unregistered dealers. The latest development shows the SEC’s continued clampdown on the crypto industry in recent times. The watchdog previously accused Coinbase, Kraken, Genesis, and Gemini of breaking securities laws. Furthermore, Brian Peterson and his companies, collectively called Braverock entities, were also caught in the SEC charges.

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