SEC seeks to hold crypto platform Beaxy liable for $5.9M in disgorgement
The Securities and Exchange Commission (SEC) has filed a motion for default judgment against Beaxy Digital, Ltd. and Artak Hamazaspyan.
The relevant documents were submitted on January 31, 2024 at the Illinois Northern District Court.
Let’s recall that, 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 (BXY) 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.
As per the proposed default judgment, Beaxy Digital is liable for disgorgement of $5,939,931.80, representing net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $1,397,816.70.
Defendant Hamazaspyan is liable for disgorgement of $480,000, representing net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $112,956.18.
Defendants Beaxy Digital and Hamazaspyan are each liable for civil penalties in the amounts of $111,614 and $960,000, respectively, pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)].
The defendants must satisfy these obligations by paying the due amounts to the Securities and Exchange Commission within 30 days after entry of the Default Judgment.