The US Securities and Exchange Commission (SEC) continues to increase the pressure on the crypto money sector day by day.
In this context, the SEC accused Artak Hamazaspyan, the founder of crypto exchange Beaxy, of operating an unregistered exchange and brokerage.
The SEC also accused Beaxy Digital Ltd. of illegally raising $8 million in an unregistered securities offering with the BXY token and misappropriating founder Hamazaspyan's at least $900,000 for personal use, including gambling.
After these accusations and the investigation, Beaxy also announced that the stock market was closed.
The stock market made the following statements in its statement:
“Unfortunately, we are announcing the immediate suspension of services on Beaxy Exchange.
We have been expressly committed to collaborating with the SEC for over two years, continually providing information, data and interviews to assist regulators in any way we can.
Unfortunately, despite our best efforts, the regulatory environment turned out to be too uncertain to continue operations.
If you have any assets on the exchange, they are safe and will be available for withdrawal within 24 hours after all user orders have been canceled and balances verified.
We strongly recommend that you withdraw any remaining assets within 30 days to avoid unnecessary complications and delays."
SEC Chief Executive Gurbir Grewal is on the subject; “When a crypto broker combines all these functions under one roof (that is, as we claim Beaxy does), investors are at serious risk. The exchange's blurring of functions and lack of registration meant that regulations designed to protect investors were not followed or even recognized by Beaxy. " said.