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 Northern District Court of Illinois on February 13, 2024.
Defendants Beaxy Digital, Ltd. and Artak Hamazaspyan did not attend the hearing on the SEC’s motion for default judgments. Plaintiff’s motion for default judgment against defendants Beaxy Digital, Ltd. and Artak Hamazaspyan was accepted. The Court finds that there is a sufficient factual basis to support the allegations in the complaint and the remedies sought.
Defendant Beaxy Digital is liable for impairment of $5,939,931.80, representing the net profits earned as a result of the conduct alleged in the complaint, together with prejudgment interest in the amount of $1,397,816.70.
Defendant Hamazaspyan is liable for disgorgement of $480,000, representing net profits earned as a result of the conduct alleged in the complaint, together with prejudgment interest in the amount of $112,956.18.
Defendants Beaxy Digital and Hamazaspyan are each subject to civil penalties 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)].
The defendants must satisfy these obligations by paying the following amounts to the Securities and Exchange Commission within 30 days of the filing of the Default.
Recall that on March 29, 2023, the Securities and Exchange Commission charged the crypto asset trading platform beaxy.com and its executives with failing to register as a national securities exchange, broker and clearing agency.
The SEC also accused the platform’s founder, Artak Hamazaspyan, and a company he controlled, Beaxy Digital, Ltd., of raising $8 million in an unregistered offering of the Beaxy token (BXY) and alleged that Hamazaspyan embezzled at least $900,000 for personal use, including gambling.
Finally, the SEC charged market makers operating on the Beaxy platform as unregistered dealers.