{"id":623489,"date":"2023-03-30T03:46:00","date_gmt":"2023-03-30T08:46:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/30\/beaxy-shuts-down-following-sec-lawsuit\/"},"modified":"2023-03-30T03:46:00","modified_gmt":"2023-03-30T08:46:00","slug":"beaxy-shuts-down-following-sec-lawsuit","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/30\/beaxy-shuts-down-following-sec-lawsuit\/","title":{"rendered":"Beaxy Shuts Down Following SEC Lawsuit"},"content":{"rendered":"<div id=\"page\">\n<div id=\"content_box\">\n<header>\n<div>\n<p><img loading=\"lazy\" alt src=\"https:\/\/secure.gravatar.com\/avatar\/41169a86822e6585e2f87627f7d7ef3a?s=32&#038;d=mm&#038;r=g\"  height=\"32\" width=\"32\" decoding=\"async\"><\/p>\n<p><span><span>By <a href=\"https:\/\/fullycrypto.com\/author\/mahu_bs\" title=\"Posts by Mark Hunter\" rel=\"author\">Mark Hunter<\/a><\/span><\/span><\/p>\n<p><span><\/p>\n<p>1 hour ago<span>Thu Mar 30 2023 08:46:53<\/span><\/p>\n<p><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/header>\n<p><img loading=\"lazy\" width=\"1300\" height=\"890\" src=\"https:\/\/fullycrypto.com\/wp-content\/uploads\/2023\/03\/Beaxy-Shuts-Down-Following-SEC-Lawsuit.png\" alt=\"Beaxy-Shuts-Down-Following-SEC-Lawsuit\" decoding=\"async\" title data-layzr=\"https:\/\/fullycrypto.com\/wp-content\/uploads\/2023\/03\/Beaxy-Shuts-Down-Following-SEC-Lawsuit.png\">\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<div>\n<p><span><span>Reading Time: <\/span> <span>2<\/span> <span>minutes<\/span><\/span><\/p>\n<ul>\n<li aria-level=\"1\"><span>Crypto exchange Beaxy has closed down following charges by the SEC<\/span><\/li>\n<li aria-level=\"1\"><span>Beaxy, its founder, and current operators were hit with various securities charges<\/span><\/li>\n<li aria-level=\"1\"><span>The founder, Artak Hamazaspyan, has also been charged with misappropriation of funds<\/span><\/li>\n<\/ul>\n<p><span>Beaxy has become the latest <\/span><a href=\"https:\/\/fullycrypto.com\/crypto-exchange-reviews\"><span>exchange<\/span><\/a><span> to feel the force of the Securities and Exchange Commission\u2019s crypto-crippling mission, shutting its services following a lawsuit from the agency. The exchange, which hasn\u2019t been active on its Twitter account since November 2021, posted a message on its homepage to say that it had \u201cmade the difficult decision to cease operations\u201d after five and a half years, citing the \u201cuncertain regulatory environment\u201d surrounding its business. As far as the SEC is concerned there is no uncertainty \u2013 the company and its founder, Artak Hamazaspyan, operated a \u201cnational securities exchange, broker, and clearing agency\u201d without registering it, and also accused him of misappropriating company funds.<\/span><\/p>\n<h2><span>SEC Says Hamazaspyan Misappropriated $900,000<\/span><\/h2>\n<p><span>The <\/span><a href=\"https:\/\/www.sec.gov\/news\/press-release\/2023-64\" target=\"_blank\" rel=\"nofollow noopener\"><span>SEC filed charges<\/span><\/a><span> against Hamazaspyan and Beaxy, which was one of the first exchanges to <\/span><a href=\"https:\/\/fullycrypto.com\/ripple-sec-lawsuit-hits-as-beaxy-delists-xrp\"><span>delist XRP after the SEC filed securities charges<\/span><\/a><span> against it in December 2021, yesterday, claiming that the exchange violated securities law on three fronts: the company brought together buyers and sellers of securities using non-discretionary methods and should have registered as an exchange, it acted as an intermediary for payments and deliveries and should have registered as a clearing agency, and it regularly conducted transactions for others in crypto assets that were offered and sold as securities, and should have registered as a broker.<\/span><\/p>\n<p><span>Alongside this, the agency has leveled charges at Hamazaspyan specifically, claiming that he raised $8 million in an unregistered offering of the Beaxy token (BXY) and alleged that he misappropriated at least $900,000 for personal use, including gambling. The SEC adds that after the company\u2019s current owners, Nicholas Murphy, and Randolph Bay Abbott, convinced Hamazaspyan to resign following the BXY token sale and the misappropriation of investor assets, the pair continued to violate securities laws through the operation of the Beaxy platform, and so are equally culpable.<\/span><\/p>\n<h2><span>Beaxy Operators Pay the Penalty<\/span><\/h2>\n<p><span>Beaxy hasn\u2019t had a Twitter presence since its most recent tweet on December 16, 2021, which is never a good sign, and the exchange quickly shut its doors following the SEC\u2019s announcement:<\/span><\/p>\n<p><a href=\"https:\/\/fullycrypto.com\/wp-content\/uploads\/2023\/03\/beaxy.png\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif,GIF89a%01%00%01%00%80%00%00%00%00%00%FF%FF%FF%21%F9%04%01%00%00%00%00%2C%00%00%00%00%01%00%01%00%00%02%01D%00%3B\" data-layzr=\"https:\/\/fullycrypto.com\/wp-content\/uploads\/2023\/03\/beaxy-1024x331.png\" alt=\"beaxy\" width=\"730\" height=\"236\"><\/a><\/p>\n<p><span>Murphy, Abbott, and other connected individuals and entities have already settled with the SEC for a total of $79,200 in civil penalties without admitting liability. However, the SEC is still litigating its charges against Hamazaspyan for securities fraud and against Hamazaspyan and Beaxy Digital for the unregistered offering of BXY.<\/span><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/fullycrypto.com\/mbeaxy-shuts-down-following-sec-lawsuit?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=mbeaxy-shuts-down-following-sec-lawsuit\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Mark Hunter<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Mark Hunter 1 hour agoThu Mar 30 2023 08:46:53 Reading Time: 2 minutes Crypto exchange Beaxy has closed down following charges by the SEC Beaxy, its founder, and current operators were hit with various securities charges The founder, Artak Hamazaspyan, has also been charged with misappropriation of funds Beaxy has become the latest exchange [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":623490,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120892,534,4625],"tags":[],"class_list":{"0":"post-623489","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-beaxy","8":"category-financial","9":"category-shuts"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/623489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=623489"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/623489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/623490"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=623489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=623489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=623489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}