Author: admin
Date: July 31, 2020
Crypto Exchange Beaxy, Founder Sued by SEC for Violations


They are all excited to work on this developing area of business and law. 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.” 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. 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 SEC alleged that market makers on the Beaxy Platform were operating as unregistered dealers. OneMarketData is a leading provider of software and data for the financial industry. Our flagship product, OneTick is a comprehensive suite for time-series data management and real-time analytical event processing.


The SEC charged Beaxy with raising $8 million through the unregistered offering of its native token, BXY. The regulator also alleges that the exchange’s founder, Artak Hamazaspyan, used $900,000 for personal use, including gambling. 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. 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 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.

The SEC also brought charges against Nicholas Murphy and Randolph Bay Abbott, who maintained the Beaxy platform through Windy. As PYMNTS noted, Wells notices are not formal charges or lawsuits, but often lead to them. PYMNTS has reached out to Beaxy for comment but has not yet received a reply. A message on the company’s blog Tuesday said it was suspending operations. There are several DEXs to choose from; you just have to make sure the wallet you selected in Step 2 is supported by the exchange.

There are several crypto wallets to choose from within the Ethereum network and TrustWallet appears to be the most integrated. If you are using a desktop computer, you can download Google Chrome and the wallet Chrome extension. If you prefer using your mobile phone, you can download the wallet via Google Play or iOS App Store if it’s available. Just make sure that you are downloading the official Chrome extension and mobile app by visiting the TrustWallet’s website. We are relying on exchanges to provide transparency on the holdings/liabilities that they have.

Beaxy was founded in October 2017, shortly after software engineers ArtakHamazaspyan and Mittal Patel recognized a need for a holistic, professional, licensed and secure cryptocurrency exchange. Their efforts have helped bridge the gap between cryptocurrency enthusiasts and part-time speculators, to retail and institutional investors. Beaxy has scaled its operations across the last 12 months, onboarding more than 25 full-time employees, including a development team based in Armenia.


Brian and his companies struck an agreement with Windy to provide market-making services for the Beaxy token and also made a similar arrangement for another crypto security, causing Peterson and Braverock to be unregistered dealers. Beaxy has become the latest crypto platform to be charged with running an unregistered securities exchange by the SEC. These charges are part of a broader crackdown by regulators on the digital asset space. For example, Monday saw the Commodity Futures Trading Commission file suit against crypto giant Binance, accusing it of violating the commission’s rules.

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. Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. 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.

Trade your bitcoin on Beaxy‪!‬

In a press release on Wednesday , the SEC stated that Beaxy functioned as an exchange, a broker, and a clearing agency without registering all three services. Dubai-based Fasset says Indonesia digital asset adoption is still in early stages, but the country’s young population is taking to crypto faster, encouraging exchanges to move in despite infrastructure constraints. Beaxy’s exclusive partnership with OneMarketData gives elite trading capabilities to the digital asset space — an industry first. Beaxy boasts transaction speeds of 225,000 per second per trading pair, an order of magnitude faster than any other current digital asset exchange. And last week, Coinbase CEO Brian Armstrong announced on Twitter that his company had received a Wells notice from the SEC tied to Coinbase’s listing of potential unregistered securities across its suite of products and services.

  • Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers.
  • It also alleges that Beaxy founder Artak Hamazaspyan raised $8 million in an unregistered offering of the Beaxy token and used at least $900,000 for personal use.
  • While Murphy, Abbott, Windy, and Peterson neither denied nor accepted the SEC allegations, the parties agreed to carry out certain actions, which includes closing down the Beaxy platform and ceasing the operations of an unregistered exchange, clearing agency, and a broker.
  • These charges are part of a broader crackdown by regulators on the digital asset space.

The agency also alleged that a group of companies operated by Brian Peterson, including Braverock Investments LLC, acted as market makers for the platform, allegedly acting as unregistered dealers. Launched on 10 Jun 2019, Beaxy Exchange is a centralized exchange, headquartered in The Board of Trade in Chicago, IL. The exchange claims to support 6 fiat pairs, a two-way fiat ramp, credit and debit card support, and spot cryptocurrency trading. Beaxy Exchange offers prebuilt TA, signals, for cryptocurrencies listed on their platform. Members of their team have reportedly built trading desks in Chicago, IL. Their API feature REST and WebSocket as well as FIX, view the documentation here. On March 23, the SEC also warned against investing in crypto assets securities. The agency served Coinbase with a Wells Notice and sued Justin Sun for offering BTT and TRX as unregistered securities.

Exclusive analysis

Ledger, a startup making hardware wallets for crypto investors, has raised the “bulk” of its planned €100 million fundin… Raydium, a Solana-based decentralized exchange, is proposing a bug bounty program worth 10 million RAY tokens (worth abo… In addition to a record number of order types, the Beaxy platform will launch with advanced features such as TradingView charting within the exchange UI, profit/loss calculator, and the ability to manage multiple wallets per currency. The platform also features an in-platform portfolio management and tax reporting tool. Beaxy’s dedicated support staff are available 24/7 to walk you through the exchange or help you troubleshoot any issues that you may experience.

She has worked for IBM software labs as a Rational Product Developer for 4 years and specializes in developing low latency enterprise applications with extensive experience in Agile methodologies. In 2015, Mittal found herself enamored with cryptocurrency and has since become an Ethereum Smart Contract Developer and an active trader. Her involvement as a trader gives the team additional perspective on the challenges all traders face, and she has used this knowledge as a foundation for Beaxy’s vision. And it also accuses Hamazaspyan of misappropriating some $900,000 of those funds for personal use, including gambling. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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.

Binance, the world’s largest cryptocurrency exchange, is facing formal charges from the Commodity Futures Trading Commis… A top U.S. financial regulator continues to hammer into the crypto industry. Money Services Business registered with FinCEN that services customers in 42 U.S. states, in addition to serving an active global customer base in many international markets. Buy, sell, or trade more major fiat options and dozens of cryptocurrencies on a registered U.S. exchange. Another man, Brian Peterson, was accused of acting as an unregistered dealer by providing marketing services to Beaxy.


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. Complaint alleging a $1.5 million investment fraud regarding crypto tokens issued by Saint Kitts and Nevis-domiciled Beaxy Digital Ltd. in the U.S. Securities and Exchange Commission v. Chicago Crypto Capital LLC, Brian B. Amoah, Darcas Oliver Young, and Elbert G. Elliott at the U.S.

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beaxy must ensure that their business models comply with the law and prioritize the protection of investors. As stated in the press release, Murphy and Abbott took over Beaxy and were operating the platform through Windy after Hamazaspyan stepped down following the unregistered token sale and his embezzlement of investors’ funds. The US regulator alleges that Windy violated securities laws because it ran an unregistered exchange, broker, and clearing agency. 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.

News Nuggets 30 March: Saxo’s New Portal; JPX Gets into DeFi – Finance Magnates

News Nuggets 30 March: Saxo’s New Portal; JPX Gets into DeFi.

Posted: Thu, 30 Mar 2023 07:33:31 GMT [source]

For example, if you use Trusthttps://forexhero.info/ wallet, you can go to 1inch to make the transaction. Once you buy your Ethereum, go to your Binance wallet section and look for the Ethereum you purchased. Set the network to Ethereum, provide your wallet address and the amount you want to transfer. Click the withdraw button and wait for your Ethereum to appear in your TrustWallet.

When not neck-deep in the crypto news cycle, Anthonia spends her free time globetrotting and playing video games. In addition to tracking price, volume and market capitalisation, CoinGecko tracks community growth, open-source code development, major events and on-chain metrics. Forkast.News is a digital media platform that covers stories about emerging technology at the intersection of business, economy and politics. Coinbase Global Inc is also in the SEC’s sights, saying on March 22 the regulator had found potential securities law violations and might sue.

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. Beaxy Digital LTD, a full-service cryptocurrency trading platform, officially launches today, following a thorough development period of 24 months. With more than 60,000 pre-registered users, Beaxy is currently live to customers in 43 U.S. states and 185 countries. Unlike any other exchange in the cryptocurrency sector, Beaxy boasts nine order types, powered by OneMarketData, whose clients include top tier global banks, large asset managers, proprietary trading firms, market markets and leading traditional exchanges. Crypto trading platform Beaxy has officially closed its doors as the U.S.

governing those activities

Cryptocurrencies are reportedly secured by Curv institutional custody and fiat accounts are insured up to $250,000. Beaxy Exchange offers prebuilt technical analysis trading signals for cryptocurrencies listed on their platform. Members of their team have reportedly built trading desks in Chicago, IL. Their API features REST and WebSocket as well as FIX, view the documentation here. Beaxy and its affiliates allegedly performed the functions of an exchange, broker, clearing agency, and dealer without registering with the Commission and complying with clear, time-tested rules governing those activities. The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.


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