2023-03-30
The
Securities and Exchange Commission (SEC) has charged cryptocurrency
platform Beaxy and its executives for failing to register as brokers and
clearing agencies, the latest move involving crypto by U.S. securities
regulators.
Moreover, SEC also charged founder Artak Hamazaspyan,and the company which are under Beaxy
Digital Ltd, with funding over 8 million in an unregistered offering of the Beaxy
token. He also said he spent $900,000 on personal use, including gambling.
Executives
Nicholas Murphy and Randolph Bay Abbott have violated securities laws because
they are not registered as a web trading site, clearing agency or broker.
“To protect investors, there are separate
registration requirements for exchanges, brokers, and clearing agencies, with
each essentially acting as a check on the other,” said Gurbir Grewal, director
of the SEC’s Division of Enforcement in a statement on Wednesday.
“When a
crypto intermediary combines all of these functions under one roof—as we allege
that Beaxy did—investors are at serious risk."
