The US Securities and Exchange Commission (SEC) alleged that crypto trading platform Beaxy and its executives ran an unregistered securities exchange, broker, and clearing agency.

The platform ceased operations a day before the SEC lawsuit.

Beaxy Fouder Misappropriated Nearly $1M in Investor Funds

In a press release on Wednesday (March 29, 2023), the SEC stated that Beaxy functioned as an exchange, a broker, and a clearing agency without registering all three services.

Beaxy founder Artak Hamazaspyan is also accused of unlawfully raising $8 million in an unregistered securities offering of its native token, BXY. According to the SEC complaint, Hamazaspyan embezzled $900,000 of the funds for personal use, which included gambling.

The SEC also brought charges against Nicholas Murphy and Randolph Bay Abbott, who maintained the Beaxy platform through Windy.