Crypto Exchange Beaxy, Founder Artak Hamazaspyan Sued by SEC for Violations

The next day, prosecutors in New York added a Chinese bribery charge to their fraud case against Sam Bankman-Fried, who founded the now-bankrupt crypto exchange FTX. On Monday, the Commodity Futures Trading Commission sued Binance, accusing the world’s largest crypto exchange of violating rules preventing illegal activity. NEW YORK, March 29 (Reuters) – The U.S. Securities and Exchange Commission (SEC) charged crypto firm beaxy.com and several executives for registration failures on Wednesday, expanding regulators’ push to rein in the industry. Beaxy employs institutional accounts for those who want to register as a business. There are severe perks of activating an institutional account such as a personal representative, advanced APIs, as well as very high withdrawal limits of up to 100 BTC per day.

The charges filed in Chicago federal court expand a crackdown by U.S. prosecutors and regulators on alleged abuses in the digital asset industry. Wednesday’s civil charges came one day after Beaxy said it would immediately suspend services, saying that «due to the uncertain regulatory environment surrounding our business, we have made the difficult decision to cease operations.» By doing so, the complaint alleges that Peterson and the Braverock Entities acted as unregistered dealers.

The U.S. Securities and Exchange Commission filed a lawsuit against crypto exchange Beaxy last week, alleging it offered an unregistered securities sale through a 2018 initial coin offering, and that it operated as an unregistered securities exchange, broker-dealer and clearing agency. Without admitting or denying the allegations in the complaint, Windy, Murphy, Abbott, Peterson, and the Braverock Entities have agreed to permanent injunctions prohibiting them from future violations of the securities laws alleged in the complaint and to pay civil penalties. Specifically, Windy, Abbott, and Murphy agreed to pay a total of $79,200 in civil penalties; Peterson agreed to pay a civil penalty of $6,600; and the Braverock Entities agreed to jointly and severally pay a penalty of $80,000.

Please check the website for more information as they update they are working on adding more US states all the time. Second, click «withdraw crypto» or «withdraw fiat» in the left menu depending on your preferred withdrawal currency. Another useful tool is the daily winners on the home page where you can easily scan the daily winners of all coins available. This is a great tool for crypto day traders to track daily volatility.

According to the complaint, Beaxy carried out the functions one might expect a national securities exchange, a broker and a clearing agency all would carry out despite not registering as any of these with the regulator. Among its allegations, the SEC said Beaxy operated as an unregistered exchange, a broker and a clearing agency. I strongly suspect – and I’m guessing I’m not the only one – that this may be a preview of how the SEC’s case against other crypto exchanges (cough) may go. Windy and its current managers agreed to pay $79,200 in civil penalties but did not admit to or deny the SEC’s allegations, the agency said, but the SEC is still litigating securities fraud charges filed against Hamazaspyan.

Another man, Brian Peterson, was accused of acting as an unregistered dealer by providing marketing services to Beaxy. «This case serves as yet another reminder to crypto intermediaries that their business models must comply and adapt to the law, not the other way around,» SEC Chair Gary Gensler said in a statement. Yes, this exchange allows US citizens to buy, sell, and trade both bitcoin and other cryptocurrencies.

Market Data

Windy Inc. took over the platform in 2019 after the founder misappropriated money, according to the SEC, and managers Nicholas Murphy and Randolph Bay Abbott maintained Beaxy for trading crypto assets “that were offered and sold as securities,” the SEC said. So the agency is also accusing them of violating securities law by operating an unregistered exchange, broker and clearing agency, though the platform was described as defunct in another SEC case last year. The Securities and Exchange Commission today charged the crypto asset trading platform beaxy.com (the Beaxy Platform) and its executives for failing to register as a national securities exchange, broker, and clearing agency.

In addition, Windy agreed to pay $10,779 in disgorgement plus prejudgment interest, and the Braverock Entities agreed to jointly and severally pay $52,000 in disgorgement plus prejudgment interest. The penalty amounts reflect the cooperation the staff received from the settling parties during the investigation. The US Securities and Exchange Commission is suing Beaxy.com for operating an unregistered exchange, brokerage and clearing business simultaneously, the first such action by the agency against a cryptocurrency platform. Another great thing about Beaxy is the fact that they support 6 major fiat currencies for both deposit and withdrawal. This is a huge relief for many traders as many are forced to use other platforms just to get their coins converted in and out of the blockchain. Beaxy solves this and makes it very easy for traders who are looking to cash out their cryptocurrency gains on the same platform.

“The Beaxy Platform also had the ability to trade crypto asset securities against its own customers, which gives it the means and the motive to put itself on the winning side of each trade, without regard to obligations that apply to registered broker-dealers,” the filing said. This online crypto trading platform has the main office at this address, E Jackson Blvd, Chicago, Illinois 60604. Beaxy is a relatively new cryptocurrency exchange and we see strong security features with an active insurance fund of up to $250,000 due to the registration as a Money Service Business. This adds to their credibility and we definitely recommend our traders to use this platform.

Gensler has called on companies to break up and separately register their various operations. This and much more are available and I understand why so many traders like the platform. It’s easy to use and from the main menu, you have access to features such as trender and signals which are two automatic tools for day traders that help you find new setups that have up to 70% win accuracy. I would love to see a live chat instead of the chatbot as it’s just not enough in many cases when more difficult issues arise. Other than that there is much to complain over as https://forexhero.info/ seems to be a very complete digital asset exchange.

Crypto Exchange Beaxy, Founder Sued by SEC for Violations

«Given this filing, and the fact that the SEC has reportedly issued a Wells notice to Coinbase, it is likely that this is a harbinger of additional actions with respect to exchanges and similar entities,» said Howard Fischer, a former SEC lawyer and a partner at law firm Moses & Singer. The editorial team of Trading Browser is required to use first-hand sources to collect and share information regarding the businesses we promote. Among these sources, you will find LinkedIn profiles, Trustpilot reviews, Crunchbase, Sitejabber ratings, whitepapers, government reports, and other reputable sources. Since Beaxy is registered as an MSB in the US they are obliged to keep a reserve fund for their clients.

Customers of the exchange will be able to withdraw their assets within 24 hours after all user orders are canceled and balances are verified and are encouraged to do so within 30 days, the SEC said. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. Wednesday’s SEC action included charges against Windy Inc and its principals Nicholas Murphy and Randolph Bay Abbott for operating through Beaxy’s platform without being registered.

This is one of the most generous crypto deposit bonuses I’ve seen and it’s a good way for traders to get to know the platform. If you are looking for new technology to improve your results you will be pleased to hear that Beaxy offers to trade with Hummingbot. This platform lets all traders automate their trades on the exchange and use market-making strategies and other advanced strategies through the easy-to-use interface. It also charged founder Artak Hamazaspyan with raising $8 million in an unregistered offering of the token BXY and misappropriating at least $900,000 for gambling and other personal use. SEC Chair Gary Gensler has frequently admonished digital asset firms for conducting multiple business operations that he says should normally be separate companies.

About Reuters

When you trade on the exchange you can rest assured that up to $250,000 of your capital is insured and if the worst-case scenario would ever happens, Beaxy got you covered. Simply download and install the platform and set the parameters/criteria you want to automate your trades and then let Hummingbot do the rest. A full view of market depth, order book, and order flow is readily available as well as a sentiment meter that will inform you of the rough sentiment among buyers and sellers. One-click is available for all crypto scalpers out there who are looking to trade order flow. Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. The SEC is litigating its charges against Hamazaspyan for securities fraud and against Hamazaspyan and Beaxy Digital for the unregistered offering of BXY.

An ultra-modern crypto training app is also an option when choosing Beaxy and it’s a strong recommendation for all traders who want to bring crypto to their smartphones. Beaxy, for its part, claimed an “uncertain regulatory environment” as the reason for its shutdown ahead of the lawsuit’s publication. The SEC alleges Beaxy founder Artak Hamazaspyan illegally raised $8 million in an unregistered offering of its Beaxy token.

This next-generation digital asset exchange is employing at least 50 persons which makes this a very real operation in terms of the company size and the focus right now is to be able to serve traders in all of the US states. It is registered in the US as a Money Services Business by Financial Crimes Enforcement Network (FinCEN). However, if you decide to transfer digital assets, the amount can be even smaller. Beaxy will match your first deposit with a $500 cryptocurrency welcome deposit bonus. This means that when you make the first deposit you will double your capital immediately and all of it is yours to trade with.

The minimum fiat deposit is $50 and there is no minimum or maximum limit on cryptocurrency withdrawals. New traders will be able to trade as the platform is very easy to use and more experienced traders will be able to take advantage of more complex order selections. The chart is made by Tradingview which guarantees top-tier charting all the time. The trading interface is customizable and can be moved around as you like.

While this complaint seems pretty clear, as ConsenSys’ Matt Corva pointed out, part of the issue with registration is figuring out the asset aspect of it all. The SEC’s complaint against Beaxy is fascinating to my non-lawyer eye. It’s an automatic technical analysis tool that will let you choose from new setups just and it works exactly like Tinder where you swift left and right if you want to accept the new trade setup. Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University’s business and economic reporting program.

The SEC also charged the founder of the platform, Artak Hamazaspyan, and a company he controlled, Beaxy Digital, Ltd., with raising $8 million in an unregistered offering of the Beaxy token (BXY) and alleged that Hamazaspyan misappropriated at least $900,000 for personal use, including gambling. Finally, the SEC charged market makers operating on the Beaxy Platform as unregistered dealers. The SEC alleges that when Windy Inc. took over the platform from Hamazaspyan in 2019, the new managers continued using Beaxy for trading crypto assets “that were offered and sold as securities” and in turn violated securities law.

It doesn’t look like Beaxy or its executives settled the charges with the SEC, but the fact the exchange is shutting down suggests this will be the kind of case the SEC may look to for a potentially easy win ahead of the Coinbase lawsuit. This absolutely reads like a playbook for how the SEC could sue Coinbase, if that situation doesn’t resolve with a settlement or non-action. So far all Coinbase has said is that the notice lists “an undefined” number of its listed cryptocurrencies, and that its Earn, Prime and Wallet products potentially violate securities law. You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Hamazaspyan also allegedly misappropriated at least $900,000 for personal use, including gambling, the SEC said.

Beaxy suspended services on its exchange and ceased operations “due to the uncertain regulatory environment surrounding our business,” the company said on its website—the SEC said in a statement Beaxy agreed to shut down the platform. The SEC accused a Chicago-based firm behind Beaxy and some affiliates of serving in various roles such as an exchange, broker and clearing agency without registering with the SEC. That structure, which is common throughout the crypto industry, is one that the SEC’s chair has criticized for conflicts of interest and risks to investors. It is well suited for both beginners and experienced traders as the platform is well made and there is not much clutter to be confused by. Traders who enjoy good custody of tokens, algorithmic trading, crypto welcome bonuses, AI technology, and crypto trading signals will definitely enjoy Beaxy. The next few paragraphs then contrasted Beaxy with the traditional securities world, noting that a national securities exchange would not “take possession or control” of an asset being traded, while clearing agencies handle settlement and broker-dealers.

In the past few months, a number of crypto firms have been hit with civil lawsuits, as U.S. regulators crack down on the budding industry. Most notably, cryptocurrency giant FTX collapsed last year and its founder Sam Bankman-Fried was charged with fraud. This digital asset platform is packed with features that traders love.

You have the option to activate free crypto trading signals that will automatically give you a signal every hour or so based on preset criteria. These price predictions have a 63% win rate and are pre-built technically with data-driven pattern recognition. With these crypto signals you don’t have to look for setups on your own, everything is done by the computer.

• Another great thing about Beaxy is the fact that they support 6 major fiat currencies for both deposit and withdrawal.
• The US Securities and Exchange Commission is suing Beaxy.com for operating an unregistered exchange, brokerage and clearing business simultaneously, the first such action by the agency against a cryptocurrency platform.
• Crypto trading platform Beaxy has officially closed its doors as the U.S.
• There are severe perks of activating an institutional account such as a personal representative, advanced APIs, as well as very high withdrawal limits of up to 100 BTC per day.

You have the option to trade crypto on Metatrader 5, you will have your deposit 100% matched up to $500, several fiat currencies are supported for both deposit and withdrawal, algorithmic trading is an option, and AI technology is pretty cool. Beaxy is a US crypto exchange that is focusing on making finance more digital and has created a very innovative crypto trading platform which is run by the company Windy inc at the registered address of E Jackson Blvd, Chicago, Illinois 60604, US. At Trading Browser we aim to protect the end-user by delivering content that is fully transparent and aimed at user experience, trust, and security above all else.