The US Securities and Exchange Commission (SEC) has filed a lawsuit against the cryptocurrency exchange Beaxy and its executives. The SEC accused the company and its executives of not registering with the agency. In addition, Beaxy’s founder, Artak Hamazaspyan, and the company are charged with raising $8 million through an unregistered Beaxy token offering.
The SEC also accused market makers operating on the Beaxy platform of being unregistered sellers. SEC Chairman Gensler reminded crypto brokers with this lawsuit that they need to comply with the laws.
As a result of the lawsuit, Beaxy’s executives agreed to shut down the platform and destroy the BXY tokens that belong to Windy.
The SEC continues to increase pressure on the cryptocurrency industry by filing lawsuits against many firms and organizations. Crypto exchanges are being warned to comply with the laws.