Crypto Exchange Beaxy Shuts Down Amid SEC Charges

The Securities and Exchange Commission also accused the exchange’s founder of misappropriating customer money. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. “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. It doesn’t look like Beaxy or its executives settled the charges with the SEC, but the fact the exchange is shutting down suggests this will be the kind of case the SEC may look to for a potentially easy win ahead of the Coinbase lawsuit.

• The SEC charged Beaxy and its affiliates for performing the functions of an exchange, broker, clearing agency, and dealer without registration.
• We are relying on exchanges to provide transparency on the holdings/liabilities that they have.
• Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
• I strongly suspect – and I’m guessing I’m not the only one – that this may be a preview of how the SEC’s case against other crypto exchanges may go.
• 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.

Maker fees range from 1 to 15 basis points and taker fees from 8 basis points to 25 basis points. Trading fees on Beaxy can be reduced 5-25% by enabling the Pay with BXY option. 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. If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at or find me on Twitter @nikhileshde.

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Was regularly engaged in the business of effecting transactions for the account of others in crypto assets that were offered and sold as securities, and thus should have registered as a broker. According to the complaint, Beaxy carried out the functions one might expect a national securities exchange, a broker and a clearing agency all would carry out despite not registering as any of these with the regulator. 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.

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. Cryptocurrencies are reportedly secured by Curv institutional custody and fiat accounts are insured up to $250,000. 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. Launched on 10 June 2019, Beaxy Exchange is a centralized exchange headquartered at The Board of Trade in Chicago, Illinois. The exchange supports 6 fiat pairs, a two-way fiat ramp, credit and debit card purchases, and spot cryptocurrency trading.

NEW YORK, March The U.S. Securities and Exchange Commission charged crypto firm Beaxy.com and several executives for registration failures on Wednesday, expanding regulators’ push to rein in the industry. Trade Bitcoin and over 30 other cryptocurrencies on Beaxy, a U.S. exchange with a personalized approach. How to Complete Identity Verification Identity Verification or Know Your Customer standards are designed to protect your account against fraud, corruption, money laundering, and terrorist financing. Binance requires users to complete Identity Verification to increase their account security.

Please also note that data relating to the above-mentioned cryptocurrency presented here are based on third party sources. They are presented to you on an “as is” basis and for informational purposes only, without representation or warranty of any kind. Binance is not responsible for the reliability and accuracy of such third-party sites and their contents.

Businessweek

Beaxy boasts transaction speeds of 225,000 per second per trading pair, an order of magnitude faster than any other current digital asset exchange. The next few paragraphs then contrasted Beaxy with the traditional securities world, noting that a national securities exchange would not “take possession or control” of an asset being traded, while clearing agencies handle settlement and broker-dealers. 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. It also charged founder Artak Hamazaspyan with raising $8 million in an unregistered offering of the token BXY and misappropriating at least $900,000 for gambling and other personal use.

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. Without admitting or denying the allegations in the complaint, Windy, Murphy, Abbott, Peterson, and the Braverock Entities have agreed to permanent injunctions prohibiting them from future violations of the securities laws alleged in the complaint and to pay civil penalties. 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. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day.

Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. The charges filed in Chicago federal court expand a crackdown by U.S. prosecutors and regulators on alleged abuses in the digital asset industry. 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.” Mr Ken Nagatsuka is the Executive Director and Head of Payments Department at the Monetary Authority of Singapore . The department is responsible for the authorisation, ongoing supervision and policy-making in relation to payment systems and payment service providers, such as e-money issuers, remittance providers and digital payment token service providers under the Payments Services Act.

“The beaxy Platform also had the ability to trade crypto asset securities against its own customers, which gives it the means and the motive to put itself on the winning side of each trade, without regard to obligations that apply to registered broker-dealers,” the filing said. The crypto world was riveted last week by news of the US Commodity Futures Trading Commission’s hard-hitting lawsuit against industry leader Binance — and rightly so. But a case filed by the Securities and Exchange Commission just a few days later against a much smaller player whose name also starts with a “B” could also have big ramifications for the digital-asset space. Ari Redbord is Head of Legal and Government Affairs at TRM Labs, a blockchain analytics company.

Securities and Exchange Chairman Gary Gensler’s approach to regulating the crypto w… Speculation arose after an engineer at the crypto arm of venture capital firm Andreessen Horowitz tweeted out a p… Crypto Twitter has been discussing the connection between SEC Chairman Gary Gensler and Algorand after the agency filed… A sophisticated hack of $10 million worth of crypto has left security experts perplexed. Get the latest crypto news, updates, and reports by subscribing to our free newsletter.

More about Beaxy

PEPE, a new Ethereum-based token, has seen a rapid rise in market capitalization, with WOJAK following suit. We are relying on exchanges to provide transparency on the holdings/liabilities that they have. Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. 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. Jesse Hamilton is CoinDesk’s deputy managing editor for global policy and regulation.

The SEC charged Beaxy and its affiliates for performing the functions of an exchange, broker, clearing agency, and dealer without registration. Beaxy is a centralized cryptocurrency exchange established in 2017 and is registered in United States. Beaxy 24h volume is reported to be at $0.00, a change of 0% in the last 24 hours. The Beaxy price page is just one in Crypto.com Price Index that features price history, price ticker, market cap, and live charts for the top cryptocurrencies.

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. OneMarketData is a leading provider of software and data for the financial industry.

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On March 29, 2023, the Securities and Exchange Commission charged the crypto asset trading platform beaxy.com and its executives for failing to register as a national securities exchange, broker, and clearing agency. The SEC also charged the founder of the platform, Artak Hamazaspyan, and a company he controlled, Beaxy Digital, Ltd., with raising $8 million in an unregistered offering of the Beaxy token and alleged that Hamazaspyan misappropriated at least $900,000 for personal use, including gambling. Finally, the SEC charged market makers operating on the Beaxy Platform as unregistered dealers. Windy Inc. took over the platform in 2019 after the founder misappropriated money, according to the SEC, and managers Nicholas Murphy and Randolph Bay Abbott maintained Beaxy for trading crypto assets “that were offered and sold as securities,” the SEC said.

He has received numerous awards from FinCEN, the FBI, and the United States Attorney’s Office, including the Attorney General’s Award for leading an interagency task force dedicated to prosecuting those who abuse and exploit children. Beaxy has been built from the ground up to provide best in class trading, portfolio management, security, and incentive rewards. The percent change in trading volume for this asset compared to 24 hours ago. Taylor Swift was reportedly the only celebrity to do their due diligence on crypto exchange FTX, according to the lawyer…

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. The SEC’s complaint against this other “B” — Beaxy.com— flew somewhat under the radar.

Market data is untracked

Prior to joining TRM Labs, he served as a Senior Advisor to the Deputy Secretary and the Under Secretary for Terrorism and https://forexhero.info/ Intelligence at the United States Department of Treasury. In this capacity, he worked with teams from the Financial Crimes Enforcement Network , Office of Foreign Assets Control , and other Treasury and interagency components on issues related to sanctions, the Bank Secrecy Act, cryptocurrency, and anti-money laundering strategies. Prior to this, Mr Nagatsuka has worked in the field of capital markets regulation for over 15 years, and was previously Head of the Capital Markets Policy Division responsible for policy formulation and reviewing legislation in relation to capital markets and market infrastructures. In his role, he represented MAS on various international committees under the FSB, CPMI and IOSCO, on subjects such as OTC derivatives reforms and financial market infrastructures. Prior to that, he also served in various roles in exchange and clearing house supervisory functions.

In addition to tracking price, volume and market capitalisation, CoinGecko tracks community growth, open-source code development, major events and on-chain metrics. The SEC alleges Beaxy founder Artak Hamazaspyan illegally raised $8 million in an unregistered offering of its Beaxy token. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. “Given this filing, and the fact that the SEC has reportedly issued a Wells notice to Coinbase, it is likely that this is a harbinger of additional actions with respect to exchanges and similar entities,” said Howard Fischer, a former SEC lawyer and a partner at law firm Moses & Singer. Another man, Brian Peterson, was accused of acting as an unregistered dealer by providing marketing services to Beaxy.

Fresh off of an eight million dollar fundraise, Beaxy intends to use these funds to expand operations in the U.S, expand into Europe, and integrate fiat deposits and withdrawals from around the globe. By doing so, the complaint alleges that Peterson and the Braverock Entities acted as unregistered dealers in violation of Section 15 of the Exchange Act. The Beaxy platform is engineered through partnerships with market leaders from the legacy financial world to bring cutting edge technologies from heavyweight trading institutions, creating a one-of-a-kind and best-in-class digital asset trading platform with unparalleled throughput and low latency performance. Beaxy’s exclusive partnership with OneMarketData gives elite trading capabilities to the digital asset space — an industry first.

This absolutely reads like a playbook for how the SEC could sue Coinbase, if that situation doesn’t resolve with a settlement or non-action. So far all Coinbase has said is that the notice lists “an undefined” number of its listed cryptocurrencies, and that its Earn, Prime and Wallet products potentially violate securities law. Bloomberg Surveillance Bloomberg Surveillance with Tom Keene, Jonathan Ferro & Lisa Abramowicz live from New York, bringing insight on global markets and the top business stories of the day. Previously, Mr. Redbord served as a Senior Assistant United States Attorney for the District of Columbia, where he investigated and prosecuted cases related to cryptocurrency, terrorist financing, sanctions evasion, export control, child exploitation and human trafficking.

You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. To check Beaxy’s price live in the fiat currency of your choice, you can use Crypto.com’s converter feature in the top-right corner of this page. If you are new to crypto, use the Crypto.com University and our Help Center to learn how to start buying Bitcoin, Ethereum, and other cryptocurrencies. Africa+ Africa is quickly becoming one of the business world’s most supercharged areas, with a burgeoning startup scene, expansive infrastructure projects, and capital pouring in from across the world.

In this series, Quicktake Originals takes an in-depth look at the domestic and international projects that are shaping modern Africa, and their implications for the global economy. Market cap is calculated by multiplying the asset’s circulating supply with its current price. 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 uses a tiered fee structure that is based on the average daily volume of the account holder as well as the amount of BXY that they hold on Beaxy.

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. 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. On Monday, the Commodity Futures Trading Commission sued Binance, accusing the world’s largest crypto exchange of violating rules preventing illegal activity.