SEC Shuts Down Beaxy Exchange With Immediate Effect

The charges filed in Chicago federal court expand a crackdown by U.S. prosecutors and regulators on alleged abuses in the digital asset industry. The Beaxy executives agreed to cease the operations without admitting or denying the allegation. “We allege that Beaxy and its affiliates 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,” commented SEC chair Gary Gensler. The lawsuit also pulled in Brian Peterson, who allegedly provided market-making services for Beaxy through his companies Braverock Investments LLC and Future Digital Markets Inc. By offering these services, Peterson acted as an unregistered dealer. It further charged founder Artak Hamazaspyan with conducting an unregistered offering in which he raised $8 million from selling Beaxy tokens (BXY).

This account will be separate from the account you made for the Whitelist, but if you use the SAME email to register for the demo, your account will be migrated over to the main exchange/your whitelisted account when it launches in Q3. “We strongly advise you to withdraw any remaining assets within 30 days to avoid unnecessary complications and delays,” the exchange told its users. “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.

About Beaxy

Hamazaspyan also allegedly misappropriated at least $900,000 for personal use, including gambling. This fee is line with the historical global industry average, which was arguably around 0.25%. Today, however, the industry average is 0.213% for takers and 0.16% for makers, so Beaxy is a bit above average when it comes to taker fees.

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. Below are a few of the advantages the exchange itself promotes on its website. Among these, security, performance, low trading fees and 24/7 support are the ones we deem most important. Naturally, referral programs and options to customize the trading experience are also positive.

Market Makers Separately Charged as Unregistered Dealers

The SEC alleges Beaxy founder Artak Hamazaspyan illegally raised $8 million in an unregistered offering of its Beaxy token. Beaxy’s exclusive partnership with ​OneMarketData (“OMD”), lead to the development of a proprietary and market leading matching engine with unparallelled speeds of up to 250,000 transactions per second, per pair – comparable to that of NASDAQ. Our development teams started with OMD’s OneTick® product, a comprehensive suite for time-series data management and real-time analytical event utilized by Bloomberg, Bank of America and The Federal Reserve, among others and built Beaxy’s matching engine on top of their existing software. The result is a platform with extremely low latency and market leading high speed data transmission.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential https://traderoom.info/fundamentals-of-web-application-architecture/ event that brings together all sides of crypto, blockchain and Web3.

How American courts have become central to crypto law

Most notably, cryptocurrency giant FTX collapsed last year and its founder Sam Bankman-Fried was charged with fraud. 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. Crypto trading platform Beaxy has officially closed its doors as the U.S. Securities and Exchange Commission charged the company and its founder, Artak Hamazaspyan. With operating an unregistered exchange and brokerage, the agency said Wednesday in a statement. 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.

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. Helene is a New York-based news reporter at CoinDesk covering U.S. crypto exchanges and Wall Street. She is a recent graduate of New York University’s business and economic reporting program and has appeared on CBS News and Nasdaq TradeTalks where she talked about the market.

Beaxy Review

The SEC said is litigating its charges against Hamazaspyan for securities fraud and against Hamazaspyan and Beaxy Digital for the unregistered BXY offering. According to his LinkedIn profile, Hamazaspyan left Beaxy in September 2019 and is located in Yerevan, Armenia. Beaxy is a centralized cryptocurrency exchange established in 2017 and is registered in United States. Currently, there are 0 coins and 0 trading pairs available on the exchange.

By doing so, the complaint alleges that Peterson and the Braverock Entities acted as unregistered dealers. According to an official press release, the SEC alleges that Beaxy operated without registering as a national securities exchange, broker, or 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.

Beaxy 24h volume is reported to be at $0.00, a change of 0% in the last 24 hours. The SEC is litigating its charges against Hamazaspyan for securities fraud and against Hamazaspyan and Beaxy Digital for the unregistered offering of BXY. The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against the Beaxy exchange, shutting down its operations.