The SEC has charged Beaxy, its founder Artak Hamazaspyan, and two executives, Nicholas Murphy and Randolph Bay Abbott, for failing to register as an exchange, broker, or clearing agency.
They also allege that Hamazaspyan raised $8 million for the Beaxy token without registering it and used $900,000 for personal expenses, including gambling.
According to Gurbir Grewal, director of the SEC’s Division of Enforcement, “investors are at serious risk” when crypto intermediaries combine all of the functions of an exchange, broker, and clearing agency under one roof, as Beaxy allegedly did.
The SEC has said:
“We are litigating its charges against Hamazaspyan for securities fraud and against Hamazaspyan and Beaxy Digital for the unregistered offering of BXY.”
