The cryptocurrency trading platform Beaxy announced Wednesday it will shut down due to a lawsuit from the Securities and Exchange Commission accusing it of skirting federal law, becoming the latest firm to be ensnared in a wide-ranging crackdown on allegedly illegal crypto activity. The crypto exchange Beaxy ceased operations after it was charged by the SEC with failing to register as a securities exchange, in a complaint that also alleged the company’s founder, Artak Hamazaspyan, misappropriated $900,000 of customer money for gambling and other personal uses. The Commodity Futures Trading Commission sued the world’s largest crypto exchange Binance and its chief executive Changpeng Zhao, alleging the firm had worked to “keep the money flowing and avoid compliance,” including by letting U.S. customers trade on its platform even though it isn’t registered under U.S. law (Zhao called the suit “unexpected and disappointing”). Do Hyeong Kwon, founder of the stablecoin TerraUSD and its companion token Luna, was charged with fraud by U.S. prosecutors after he was arrested in Montenegro, adding to a civil suit brought against him by the SEC in February, nine months after the sudden collapse of both tokens last year.
Full Crypto Crackdown report : Here Are All The Major Crypto Firms Facing Charges From Regulators This Year.
