The U.S Securities and Exchange Commission (SEC) has sued Beaxy Digital for not registering with the authorities. The suit also involves executives of the firm and other entities as defendants, a report by Reuters says.
The crypto trading platform has been in operation since 2017 and profited from the crypto industry, but has failed to register as a crypto firm, which violates the law, the SEC said in the details of the case.
Top Executives Involved in the Case
CypherMindHQ.com Artificial Intelligence Crypto Trading System - Surpass the competition with this cutting-edge AI system! Utilize the prowess of innovative algorithms and amplify your crypto trading strategies with CypherMindHQ. Learn more today!
Several executives have been fingered in the case involving Beaxy Digital for a range of offences. The SEC is accusing the founder Artak Hamazaspyan of raising $8 million in an unregistered offering of the Beaxy token (BXY), and also for misappropriating at least $900,000 for personal use.
Other executives, Nicholas Murphy and Randolph Bay Abbott allegedly facilitated trading on the Beaxy platform since October 2019 through Windy Inc, a company they manage. None of them have been able to deny or admit the allegations against them at the time of writing this report.
Recent Crackdown on Crypto in the U.S
The U.S has recently started a crackdown on cryptocurrency companies. The Commodities and Futures Trading Commission (CFTC) filed a case against Binance, the largest cryptocurrency exchange by market capitalization this week.
The commission alleges that Binance has willfully evaded regulation in the country, and is seeking to stop its operations in the country. interestingly, the U.S is one of several countries yet to institute clear regulatory guidelines for the industry.
Meanwhile places like Hong Kong and Australia are working towards becoming crypto hubs with crypto-friendly regulations.