Beaxy.com, a platform for trading crypto assets, as well as its management, has been accused by the Securities and Exchange Commission (SEC) of failing to register as a national securities exchange, broker, or clearing agency. Artak Hamazaspyan, the company’s founder, and Beaxy Digital, Ltd. were accused of selling the Beaxy token (BXY) in an unregistered offering that brought in $8 million. allegedly misappropriating at least $900,000 for personal use.
This was in addition to the charge that they were accused of raising $8 million in an unregistered offering of the Beaxy token (BXY). Market makers who used the Beaxy platform were also accused of being unlicensed dealers in this case.
According to the SEC’s complaint, Windy Inc. has been using Nicholas Murphy and Randolph Bay Abbott to run the Beaxy platform as a web-based trading platform since October 2019. This has made it possible to buy and sell crypto assets in the same way that securities are bought and sold.
In the complaint, it is said that Windy broke the Securities Exchange Act of 1934 by using the Beaxy platform to act as a middleman in making payments and delivering goods when sell and buy orders matched, by bringing together the orders for securities of multiple buyers and sellers using established, non-discretionary methods, and by regularly doing business involving crypto assets that were offered and sold as securities on behalf of others.
The SEC claims that after convincing Hamazaspyan to step down as CEO of Beaxy following the unregistered issuance of securities, Murphy and Abbott continued to administer the Beaxy platform through Windy. of BXY and the theft of investor assets. This happened after Hamazaspyan convinced Hamazaspyan to step down as CEO of Beaxy. This violates the terms of their employment. As a result, not only are they accountable for operating an unlicensed exchange but also for acting as a broker and clearing agency.
In addition, Windy agreed with Brian Peterson and his firms to provide market-making services for BXY. Peterson and the Braverock Entities are accused of violating the conditions of the agreement by operating as unlicensed dealers in the lawsuit.
As part of the consent order that was sent to the United States District Court for the Northern District of Illinois, Windy, Murphy, Abbott, and Peterson agreed to stop all of their activities as an unregistered exchange, clearing agency, broker, and dealer; shut down the Beaxy platform; provide an accounting of assets and funds for the benefit of customers; transfer all customer assets and funds to each customer; and destroy all BXY materials.
Peterson has agreed to pay a $6,600 civil penalty, while Windy, Abbott, and Murphy have each agreed to pay $79,200.The Braverock Entities agreed that they would pay a fine of $80,000 together and separately. Windy also agreed to pay $52,000 in disgorgement and prejudgment interest, and the Braverock Entities agreed to pay $52,000 in disgorgement and prejudgment interest as a group and as individuals.
Windy’s portion of the payment will be $10,779, and the Braverock Entities’ portion will be $52,000. The SEC has brought securities fraud allegations against Hamazaspyan and unregistered offering of BXY charges against Hamazaspyan and Beaxy Digital. The SEC is currently fighting all of these cases in court.
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