The US Securities and Exchange Commission (SEC) is on the agenda with its accusations against many crypto money companies. The SEC, which has been in a lawsuit with Ripple since 2018, has targeted another altcoin project. Accordingly, the SEC filed a lawsuit against a Chicago-based crypto investment firm and its three employees on Sept. According to the accusation, the cryptocurrency company sold $1.5 million worth of cryptocurrencies not registered with the SEC. In the meantime, the price of the altcoin dropped with the allegations.
SEC sues this altcoin company
According to the SEC’s accusation, Brian Amoah, the owner of the company named Chicago Crypto Capital (CCC), and 2 salespeople made illegal altcoin sales. According to the regulator’s claim, these individuals sold BXY tokens to 100 investors from August 2018 to September 2019, many of whom had no previous cryptocurrency experience. The SEC said the company misled these investors in how it handled the tokens.
According to the agency, BXY is a token compatible with the defunct crypto exchange Beaxy. Beaxy hoped to raise capital and build a strong user base. For this, he sold a token that investors said could generate high returns during the ICO period. Allegedly, Beaxy had an agreement with CCC to sell these tokens. The lawsuit alleges that CCC pocketed 3 cents of every 5-cent sale.
They sold without informing the investors
In the complaint, CCC sold the altcoin asset to inexperienced investors without informing them about the company’s commissions. CCC then neglected to deliver BXY tokens to some of its recipients. The SEC says the company violated US securities law. He also accuses her of being an unregistered broker and scam. In this way, the agency is trying to prevent the company from offering crypto securities.
The lawsuit is the SEC’s latest step to clear up allegations of misconduct in the cryptocurrency space. On September 14, SEC Chairman Gary Gensler made a speech, as we reported as Kriptokoin.com. Gary Gensler said the “vast majority” of cryptocurrencies are securities. He also emphasized his belief that cryptocurrencies should therefore be subject to surveillance. CCC has yet to respond to media requests for comment.
BXY’s price fell, then rebounded
BXY’s price plummeted as news emerged that the SEC was suing. However, the altcoin later returned to its former price levels. BXY, which traded at $0.001344 on September 12, was changing hands at $0.001008 on Thursday, September 15. With a market capitalization of $298,184, Beaxy (BXY) ranks 1845th in the market according to CoinMarketCap data.
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