This left previous users of the platform searching for a viable alternative. “When a crypto intermediary combines all of these functions under one roof—as we allege that Beaxy did—investors are at serious risk.” Executives Nicholas Murphy and Randolph Bay Abbott were also caught up in charges via a company they managed called Windy, which maintained Beaxy. Windy, through the Beaxy Platform, violated securities laws because it didn’t register as an exchange, a clearing agency or a broker, the SEC alleges.

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The SEC also charged several market-makers that operated on the Beaxy platform as unregistered dealers. The founder of Beaxy Exchange was charged with raising $8 million in an unregistered offering of the Beaxy token (BXY) and misappropriation of those funds. Why Traders are Flocking to Beaxy Exchange Beaxy Exchange is a next-generation trading platform that bridges the gaps between cryptocurrency and legacy finance. Beaxy lists dozens of assets, has a global fiat on and off-ramp, unparalleled security, and low trading fees. Beaxy offers a feature-rich platform that was built from the ground up with traders in mind.

The trading platform also attracted the attention of investors and raised $3 million with an initial coin offering last year. The exchange also revealed that it has a total of $8 million in its funding chest. Beaxy today announced the launch of its much-anticipated cryptocurrency exchange platform. Beaxy Exchange offers it’s traders the best loyalty reward programs that allow them to earn up to 12% APR, get rebates of 30% on trading fees, and trade or own more of their favorite cryptocurrencies. Securities and Exchange Commission (SEC) charged the company and its founder Artak Hamazaspyan with operating an unregistered exchange and brokerage, the agency said in a Wednesday statement.

Key Features

Beaxy Exchange stands out from other trading platforms by leveraging sophisticated artificial intelligence to provide its traders with assistive trading technology that helps give the user the confidence to make informed trades. These services range from automated technical analysis to customized trade alerts that are tailored to your strategy. To make this vision come true, the trading platform has to deliver on its initial promise. The list of core features provided to users goes to show the team is very serious about letting users trade cryptocurrencies on their platform. It has by far one of the most convenient user interfaces in the industry today. This UI allows users to both trade and store dozens of cryptocurrencies, tokens, and assets in a matter of a few clicks.

According to the SEC complaint, Hamazaspyan embezzled $900,000 of the funds for personal use, which included gambling. In a press release on Wednesday (March 29, 2023), the SEC stated that Beaxy functioned as an exchange, a broker, and a clearing agency without registering all three services. This platform is not only available from your desktop, you can also access it via your mobile. Most traders in the crypto world today carry out their trades via desktop (around 70% or so).

Figures from LunarCrush showed that when market and social performance are combined, XRP emerged as the number one ranking digital asset. Keep in mind, in total the exchange has just $39,011 in volume (~4.72 BTC). A week later, it started to become clear that the exploit likely left Beaxy insolvent. As investigative crypto-journalist John Galt writes in his piece Beaxy — Incompetent. BeInCrypto reported in August of a major exploit on Beaxy which resulted in an artificial 40% crash on the XRP/BTC trading pair.

• In a blog post, the exchange revealed it would suspend all services immediately “due to the uncertain regulatory environment surrounding our business.”
• Its list of supported blockchain networks includes many of the major names in the industry such as ETH 2.0, Bitcoin, Polkadot, Solana, Cardano, the Lightning Network, and Cosmos.
• In the following example, if a user locks up 100K BXY tokens for 6 months, they will receive 100K PLS tokens.
• Beaxy gives you access to globally sourced liquidity that results in competitive entry and exit levels when you trade BTC-USD.

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Its unique Trender service, however, could make it a good stepping stone for new traders, so it’s a platform still worth considering if you’re just getting started in your trading journey. This is not to say either service is terrible, but they certainly aren’t good compared to other bot trading platforms or cryptocurrency exchange VIP/reward systems. The Beaxy trading interface is more than satisfactory, with low trading fees and considerably more order types than most other crypto exchanges, but it is severely lacking in https://traderoom.info/beaxy-cryptocurrency-exchange-review/ markets. Beaxy is a Chicago-based cryptocurrency exchange platform where users can easily buy, sell, store, and trade a wide range of crypto assets and fiat currencies. As Beaxy is still building its reputation and developing its user base, it offers an attractive fee structure, and the BXY token allows users to reduce their fees by up to 50%.

Beaxy Trading Fees

Users can also earn a portion of trading fees by locking up PLS tokens and onboarding friends onto the platform via the referral program. Beaxy is a new cryptocurrency exchange that aims to get ahead of its competition by making improvements across the board, and equipping crypto traders with a completely modernized approach to buying and selling digital assets. Beaxy will offer the first all-in-one exchange with fiat trading pairs and a wide range of cryptocurrencies, making trading much easier for both newcomers and experienced traders Last but not least, users can benefit from the Loyalty Rewards and Referral program provided by Beaxy.

In response to the lawsuit, the SECsaid Windy, Murphy, Abbot and Peterson have agreed to shut down thecryptocurrency trading platform, refund all customers and destroy “any and allBXY in Windy’s possession.” However, the SEC in a pressstatement released on Wednesday said it charged Artak Hamazaspyan, the crypto exchange’s Founder, andhis company, Beaxy Digital Limited, for raising $8 million in anunregistered offering of the Beaxy token (BXY). The securities regulatorfurther alleged that Hamazaspyan “misappropriated at least $900,000 forpersonal use, including gambling.” Cryptocurrency exchange, Beaxy,has shut down its operations afterover three years oflaunching into the market.

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Some Twitter users supported the SEC’s move after evaluating the exchange’s various features. The regulator claims that after raising $8 million through the unregistered securities, founder Hamazaspyan was pushed to resign in October 2019, and Nicholas Murphy and Randolph Bay Abbott took over. Through their firm Windy, Inc., they operated Beaxy until its shutdown this week. While the charges by the SEC portrayed the exchange as an entity that knowingly and consistently violated securities and financial laws, Beaxy claimed that it has been working with the regulator since its launch.

The regulator also alleges that the exchange’s founder, Artak Hamazaspyan, used $900,000 for personal use, including gambling. In addition, Beaxy has a smaller number of supported cryptocurrencies than leading exchanges such as Binance and Huobi. However, the team are planning to roll out a number of additional features that will help to establish the exchange as a viable alternative to current industry leaders.

It claimed to have “provided information, data, and interviews to assist regulators in whatever manner we could.” Following the lawsuit, Beaxy has announced that it’s winding up its operations. In a blog post, the exchange revealed it would suspend all services immediately “due to the uncertain regulatory environment surrounding our business.” Beaxy reached a settlement with the SEC that saw them agree to pay fines totaling $165,200, cease operations, and shut down their platform.

However, there are naturally people out there that want to do it from their smart phone as well. Below are a few of the advantages the exchange itself promotes on its website. Among these, security, performance, low trading fees and 24/7 support are the ones we deem most important. Naturally, referral programs and options to customize the trading experience are also positive.

Giving customers all of the options they might ever need shows Beaxy is here to stay. “To protect investors, there are separate registration requirements for exchanges, brokers, and clearing agencies, with each essentially acting as a check on the other. When a crypto intermediary combines all of these functions under one roof—as we allege that Beaxy did—investors are at serious risk. The blurring of functions and the lack of registrations meant that regulations designed to protect investors were not followed or even recognized by Beaxy.” Beaxy founder Artak Hamazaspyan is also accused of unlawfully raising $8 million in an unregistered securities offering of its native token, BXY.

Is It Safe To Invest With Beaxy.io?

• By all accounts, it seemed to be caused by incompetence and negligence — as the exchange failed to properly install the wallet as per Ripple’s own instructions.
• This should serve as a warning that your funds may not be secure, and there’s no protective regulatory framework.
• SEC is incrementally building a body of legal theories to target crypto asset intermediaries.
• Guidehouse can assist crypto providers in the pre-registration phase to obtain an MSB license from FinCEN and/or individual state licenses, including the New York State Department of Financial Services BitLicense.
• The SEC also charged several market-makers that operated on the Beaxy platform as unregistered dealers.
• The list of core features provided to users goes to show the team is very serious about letting users trade cryptocurrencies on their platform.

Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said that exchanges, brokers, and clearing agencies all had different registration requirements adding that We allege that Beaxy and its affiliates performed the functions of an exchange, broker, clearing agency, and dealer without registering with the Commission and complying with clear, time-tested rules governing those activities. Securities and Exchange Commission(SEC) pressed charges against the company along with its founder for failing to register the exchange and running an unlicensed broker, and clearing agency.

Beaxy noted that the exchange cooperated with the SEC for more than two years but said the uncertain regulatory landscape made it difficult for the platform to keep functioning. Trading has been halted, and users are advised to withdraw their assets within 30 days. On the date of last updating this review the 24-hour trading volume was as low as USD 1,612 vis-a-vis  USD 19,676 on 18 September 2021, according to Coinmarketcap.com. Otherwise, it will be difficult for Beaxy to attract new trading users to its platform.

Once you download Hummingbot and create an account, you’ll have to connect your Beaxy exchange account through the API and then set the strategies and parameters you want to use to begin your automated trading. The trading fees for Beaxy are also relatively low, with a maker fee of 0.1425% and a taker fee of 0.2375%. Last week saw Ripple XRP social mentions skyrocket, along with its price – up 21% in the preceding seven days.