Beaxy Founder Accused of Misusing $900K Raised in Unregistered Offering

Beaxy Founder Accused of Misusing $900K Raised in Unregistered Offering

Beaxy Founder Accused of Misusing $900K Raised in Unregistered Offering PlatoBlockchain Data Intelligence. Vertical Search. Ai.

SNEAK PEEK

  • Beaxy founder Artak Hamazaspyan is accused of misusing $900K raised in an unregistered offering of BXY tokens for personal use.
  • The SEC has reminded crypto trading platforms that they must comply with the regulations established by the law.
  • Coinbase recently received a Wells notice from the US SEC regarding potential violations of securities laws.

Crypto trading platform Beaxy has been charged by the US Securities and Exchange Commission (SEC) for not registering as a national securities exchange, broker, or clearing agency, allegations of securities fraud, and the unregistered offering of its Beaxy token (BXY).

The SEC claims that Beaxy founder Artak Hamazaspyan raised $8 million through an unregistered offering of BXY and used $900,000 for personal use, including gambling. After Hamazaspyan resigned, Nicholas Murphy and Randolph Bay Abbott continued operating the platform, according to the SEC. Beaxy has since ceased operations due to the “uncertain regulatory environment surrounding our business.”

In a statement, SEC Chair Gary Gensler reminded cryptocurrency trading platforms that they must comply with the regulations established by the law rather than attempt to shape the direction to fit their business models.

He made this statement about the charges brought against Beaxy for allegedly not registering as a national securities exchange, broker, or clearing agency, as well as for securities fraud and the unregistered offering of its BXY token.

Last week, the US SEC issued a Wells notice to cryptocurrency trading platform Coinbase, indicating potential violations of securities laws. However, after receiving the wells’ notice, Coinbase published a blog post on its website stating that it could not provide a meaningful response because the SEC needed more information.

Despite the recent news about Beaxy being charged by the SEC, the price of the BXY token has been trending upward in the past 24 hours, with a 2.02% increase in price. It is currently traded at $0.0002872 and has a market capitalization of $84,986. The bullish trend has led to establishment of a support level at $0.0002806 and a resistance level at $0.000291.

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