Main navigation

Crypto Exchange and Founder Sued by SEC in Wake of Binance CFTC Lawsuit

Thu, 03/30/2023 - 13:14
article image
Tomiwabold Olajide
Crypto exchange, founder face SEC lawsuit following Binance CFTC case
Crypto Exchange and Founder Sued by SEC in Wake of Binance CFTC Lawsuit
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

In the first-of-its-kind action by the regulator against a cryptocurrency platform, the U.S. Securities and Exchange Commission has filed legal action against for concurrently running an unregistered exchange, brokerage and clearing company. The complaint was filed in a federal court in Chicago.

SEC Chair Gary Gensler has frequently chided digital assets companies for running multiple businesses that, in his opinion, ought to be run by distinct entities.

Gensler urged such companies to separate and register each of their different operations separately.

The SEC has been stepping up enforcement against bigger industry players, most recently notifying Coinbase of its plan to sue over unregistered digital asset offerings and other issues.

Binance Sees Limited $218 Million Outflows in Hours: Details

On Monday, Binance, the world's largest crypto exchange, was sued by the U.S. Commodity Futures Trading Commission for allegedly breaking trading and derivatives rules.

Binance stated that it disagreed with the characterization of several issues alleged in the complaint.

Artak Hamazaspyan, the founder of Beaxy, was also charged by the SEC with securities fraud. The business raised $8 million through the sale of its cryptocurrency token, BXY, and the SEC claimed that Hamazaspyan misappropriated $900,000 for use in gambling and other activities.

Separately, the agency announced that it had reached a settlement with Nicholas Murphy and Randolph Bay Abbott, who are presently in charge of managing Beaxy.

As part of a settlement, Beaxy consented to shut down its website. On Wednesday, the company's main website announced that operations had ended "due to the uncertain regulatory environment surrounding our business."

article image
About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.