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Beaxy Exchange suspends operations after the US SEC charges

  • The US SEC has filed several charges against the Beaxy Exchange.
  • The exchange has consequently suspended operations
  • In its defence, Beaxy has said that it committed to cooperation with the SEC for over two years.

US-based cryptocurrency exchange Beaxy Exchange suspended its operations immediately after the United States Securities and Exchange Commission (SEC) filed multiple charges against the exchange and its founder Artak Hamazaspyan.

The US regulatory authorities including the SEC seem to have gone full throttle in their crackdown on cryptocurrency platforms. SEC’s lawsuit against Beaxy comes just a few days after Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO Changpeng ‘CZ’ Zhao.

The exchange in a statement issued after the SEC lawsuit said:

“We forthrightly committed to cooperation with the Securities and Exchange Commission (SEC) for over two years, continually providing information, data, and interviews to assist regulators in whatever manner we could. Unfortunately, despite our best efforts, it has become clear that the regulatory environment is just too uncertain to continue operations.” 

SEC sues Beaxy for the sale of an unregulated security

According to a press release issued by the US SEC, Beaxy Exchange and its executives have been charged for failing to register as a national securities exchange broker and clearing agency for the sale of BXY token.

Beaxy Exchange has raised about $8 million through the sale of BXY token, which the SEC alleges is an unregistered security.

The SEC further alleges that Beaxy’s founder Artak Hamazaspyan misappropriated about $900K for his personal use, allegedly including gambling. In addition, the SEC says that Beaxy’s market makers for operating as unregistered dealers.

According to the SEC, the exchange has violated the Securities Exchange Act of 1934.

The post Beaxy Exchange suspends operations after the US SEC charges appeared first on CoinJournal.

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Mike Novogratz says Bitcoin and Ethereum are the best risk-adjusted investments today

  • Mike Novogratz is bullish on crypto, particularly the top two coins Bitcoin and Ethereum.
  • The Galaxy Digital CEO says BTC and ETH been best risk-adjusted investments over the last few years.
  • He also suggested during the company’s earnings call that the US risks losing its place as finanial and innovation leader.

Galaxy Digital CEO Mike Novogratz says crypto is in “a good moment” highlighting the fact that Bitcoin and Ethereum have been the best risk-adjusted investments in the world over the past few years.

The billionaire investor said this while commenting on the crypto market outlook during Galaxy Digital’s earnings call. He said:

“I look right now and say, “What’s the good?” Bitcoin is trading over $27,000, Ethereum over $1,700. On a risk-adjusted basis, that’s volatility adjusted, Sharpe ratio adjusted, Bitcoin and Ethereum have been the two best-performing assets in the world this year. They’ve been the two best-performing assets in the world over the last two years. So, whatever Jamie Dimon wants to say, whatever the Biden administration wants to say, they’re just wrong, and the world knows that.”

Novogratz explains what’s driving crypto

Bitcoin has tested resistance near $29,000 in 2023, with its current price of $28,650 about 84% higher year-to-date. Ethereum has also traded above $1,800 as investors eye the $2,000 level. According to latest market data, the price of Ethereum is about 61% higher YTD.

In Novogratz’ opinion, recent price action has the top coins poised for greater gains over the next several months. As highlighted in the earnings call transcript, the Galaxy Digital CEO believes all “the selling that needed done as crypto prices fell was done.

Retail has also been behind much of the recent price appreciation, the billionaire investor added.

“What’s promising, and what has driven crypto broadly this year, is two things. One, all the selling that needed to get done got done, right? There was so much bad news, if you had to sell, panic selling and just the nervousness of “Oh my God! This thing could go to zero,” and people were in sheer panic, you had seller’s exhaustion. But, you’ve had Asia reopen. China has—you know, post the Xi protests around COVID Zero, China took the regulatory boot of the necks of their tech companies, and that includes crypto, so you’re seeing, with Chinese traveling, you’re seeing more activity from Asia.”

Bitcoin could be “substantially” higher in a few months

Novogratz also believes the current wave of adoption across the Middle-East, Hong Kong and Europe is good for the crypto industry, even as the US risks losing its place as a financial market leader. 

According to him, the Biden administration’s attack on crypto, as evidenced by the series of enforcement actions and charges among other things, is shortsighted.

As for his outlook for Bitcoin and the broader crypto market, the Galaxy Digital chief noted:

“The market feels strong, and when I look at it technically on charts, we’ve had big weekly closes. I’m surprised to hear myself say this, given where my mindset was in late December, but it would not surprise if we were substantially higher three months, six months, nine months from now.”

The post Mike Novogratz says Bitcoin and Ethereum are the best risk-adjusted investments today appeared first on CoinJournal.