The exchange is said to have put its users at a very significant risk by combining several aspects of its operations that should have been registered and operated separately.
United States Securities and Exchange Commission (seconds) Is Was accused Beexi cryptocurrency trading platform to operate as an unregistered platform in the US. According To the regulator, Bixby as well as its affiliates violated the Securities Act.
The allegations leveled against Bixi also extended to its executive Artak Hamzaspian, who raised a total of $8 million in an unregistered offering of BXY tokens. The SEC said Artak embezzled funds, including using nearly $900,000 on gambling.
SEC Chairman Gary Gensler said, “We allege that Bixi and its affiliates operated as an exchange, broker, clearing agency and financial institution without registering with the Commission and without complying with the clear, time-tested rules governing those activities. Performed the functions of the dealer. “For decades, our securities laws have worked to protect investors, make capital formation easier and cheaper, and improve our markets. The case serves as another reminder to crypto intermediaries that their business model must comply with and adapt to the law, not the other way around.
SEC Chairman Gary Gensler has always stated that there are securities laws that apply specifically to crypto entities that must be followed. The commission has come under fire several times this year, with the latest Wales notice being issued after a series of enforcement actions Coinbase Global Inc (Nasdaq: COIN).
Whether the criticisms have cause or not, Gensler is a strong advocate of protecting investors and is doing just that with Bixi. According to the allegations, the SEC claimed a separate platform, Windy Inc., and its executives, Nicholas Murphy and Randolph Bay Abbott, also joined Bixi in violating the Securities Exchange Act of 1934.
Windy was indicted for facilitating the buying and selling of crypto assets that were offered and sold as securities.
Bixby Put Investors at Serious Risk, Says SEC Official
In the complaint brought against the company, the SEC’s director of enforcement, Gurbir S. Grewal said the exchange put its users at a very significant risk by combining several aspects of its operations that should have been registered and operated separately.
SEC’s Enforcement Division Director Gurbir S. “To protect investors, there are separate registration requirements for exchanges, brokers and clearing agencies, each essentially acting as a check on the other,” Grewal said. “When a crypto intermediary combines all of these functions under one roof – as we allege Bixy did – investors are at serious risk. The blurring of functions and lack of registration were meant to protect investors. These regulations were not followed or even recognized by the Beixi.
While the SEC said it is continuing to litigate its allegations against Humzaspian for securities fraud and against Humzaspian and Bixi Digital for the unregistered offering of BXY, it said that other accused parties, including Windy, Arbot and Randolph, will be responsible for those settlements. have agreed that will prevent them from moving forward. Securities Violation.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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