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Beaxy Crypto Platform Charged by SEC for Illegal Activities

The Securities and Exchange Commission (SEC) in the United States has filed charges against the cryptocurrency platform Beaxy for engaging in brokerage and clearing activities without proper registration.

Additionally, Beaxy is accused of conducting an illegal securities offering, which raised $8 million without registration.

The platform’s founder, Artak Hamazaspyan, is also facing charges for embezzling at least $900,000 for personal use, including gambling.

According to the SEC, when a cryptocurrency intermediary like Beaxy combines all features, investors are at significant risk since the blurring of functions and lack of registration mean that the rules designed to protect investors are not being followed or recognized.

In response to the charges, Beaxy stated on its website that it is suspending operations due to an “uncertain regulatory framework.”

Beaxy also claimed to have worked closely with the SEC for more than two years, providing information and data to assist regulators.

The SEC has informed Beaxy’s clients that they will be able to withdraw their assets within 24 hours and advised them to fully withdraw their assets within 30 days.

Earlier, Gary Gensler, the SEC Chairman, called on the government to allocate $2.4 billion to the agency to more effectively prosecute unregistered crypto companies.

The SEC has also warned investors about the risks of investing in crypto assets and urged them not to rely on proof of reserves published by crypto exchanges