(2023)
SEC v. Beaxy
Year
2023
Criminal or Civil
Civil
Year Resolved
Abbolt
Jurisdiction (Court/State)
U.S. District Court for the Northern District of Illinois (N.D. Ill.)
Filed By
U.S. Securities and Exchange Commission (SEC)
Penalty/Fine (USD)
$228,579 total ($79,200 civil penalties for Windy, Abbott, and Murphy; $6,600 civil penalty for Peterson; $80,000 civil penalty for Braverock Entities; $10,779 disgorgement plus prejudgment interest for Windy; $52,000 disgorgement plus prejudgment interest for Braverock Entities)
Lawsuit Overview
The SEC charged Beaxy Digital, Ltd., its founder Artak Hamazaspyan, executives Nicholas Murphy and Randolph Bay Abbott, and their company Windy Inc. for operating the Beaxy Platform as an unregistered securities exchange, broker, and clearing agency since October 2019. The SEC also charged Hamazaspyan and Beaxy Digital for raising $8 million through an unregistered offering of Beaxy tokens (BXY), with Hamazaspyan misappropriating at least $900,000 for personal use. Market makers Brian Peterson and the Braverock Entities were charged as unregistered dealers for providing market-making services for BXY and another crypto asset security. Windy, Murphy, Abbott, Peterson, and the Braverock Entities consented to permanent injunctions, civil penalties, and disgorgement, and agreed to shut down the Beaxy Platform and destroy BXY tokens. The SEC continues to litigate against Hamazaspyan for securities fraud and unregistered offerings.
Category
Securities Fraud, Unregistered Securities Offering, Unregistered Exchange/Broker/Clearing Agency, Market Manipulation
Notable Individuals Involved
Approximately $8 million (amount raised through unregistered BXY token offering)
Investor Loss Estimate
Approximately $8 million (amount raised through unregistered BXY token offering)
Final Outcome
Partially settled (Windy, Murphy, Abbott, Peterson, and Braverock Entities agreed to injunctions, penalties, and platform shutdown; litigation ongoing against Hamazaspyan and Beaxy Digital)
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