Crypto Exchange Beaxy Shuts Down Amid SEC Misconduct Allegations
Beaxy, a cryptocurrency exchange, announced on Monday that it will cease operations and refund its customers after being sued by the United States Securities and Exchange Commission (SEC) for allegedly breaking laws. on securities.
The SEC accused Beaxy of offering and selling unregistered securities in the form of digital tokens called BXY, which were supposed to give investors a share of the exchange’s profits and governance rights. The SEC also alleged that Beaxy misled investors about its regulatory compliance, security measures and trading volume.
Beaxy said in a statement that it cooperated with the SEC investigation and decided to settle the charges without admitting or denying any wrongdoing. The exchange agreed to pay an $8 million civil penalty and return all funds raised from the BXY token sale, which amounted to approximately $15 million.
Today we loaded the Crypto Asset Trading Platform https://t.co/ykFkM2s0wY and its officers for failing to register as a national securities exchange, broker and clearing agency, and we have charged market makers operating on the Beaxy platform as unregistered brokers.
— US Securities and Exchange Commission (@SECGov) March 29, 2023
Beaxy apologized to its customers and partners for the inconvenience and said it would process all withdrawal requests within 30 days. The exchange also advised its users to withdraw all funds from their Beaxy wallets as soon as possible, as the platform will be permanently closed after this period.
Beaxy’s shutdown is another blow to the cryptocurrency industry, which has come under increased scrutiny and regulation from authorities around the world.
The SEC has cracked down on unregistered token offerings and trading, saying they pose significant risks to investors and market integrity.
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