Beaxy Digital Ltd, a cryptocurrency exchange, is facing charges from the US Securities and Exchange Commission (SEC) over alleged fraudulent activities.
The SEC claims that Beaxy permitted an unauthorized individual to gain access to its platform and engage in manipulative trading.
According to the SEC’s complaint, the unauthorized individual used multiple accounts to place buy and sell orders that artificially inflated the trading volume of specific cryptocurrencies.
This created a misleading impression of market demand and manipulated the prices of those cryptocurrencies.
The SEC also asserts that Beaxy failed to implement adequate security measures to prevent unauthorized access and manipulation of its platform.
Consequently, the exchange has allegedly breached anti-fraud and anti-manipulation provisions of the federal securities laws.
The SEC is requesting a permanent injunction, disgorgement of illicitly obtained gains, and civil penalties against Beaxy.
The charges are a stark reminder that the SEC is closely monitoring the cryptocurrency industry and will take action against any company or individual that contravenes securities laws.