SEC obtains judgments against Beaxy Digital and Artak Hamazaspyan

The Securities and Exchange Commission (SEC) has secured default judgments against Beaxy Digital, Ltd and Artak Hamazaspyan.

The relevant documents were signed by the Honorable LaShonda A. Hunt of the Illinois Northern District Court on February 13, 2024.

Defendants Beaxy Digital, Ltd. and Artak Hamazaspyan failed to appear at the hearing for SEC’s motion for default judgments. Plaintiff’s Motion for Default Judgment against Defendants Beaxy Digital, Ltd. and Artak Hamazaspyan was granted. The Court found that there is a sufficient factual basis to support the allegations in the complaint and the requested remedies.

Defendant 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)].

Defendants must satisfy these obligations by paying the following amounts to the Securities and Exchange Commission within 30 days after entry of the Default Judgment.

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.