Beaxy Forced to Defend CEO After Exit Rumors Spread

Reading Time: 2 minutes

Beaxy, the exchange that was promoted by some of the biggest influencers in the crypto space, has been forced to deny that their CEO Artak Hamazaspyan has abandoned the project after a tumultuous four months that has seen the exchange hacked and, according to some accounts, rendered insolvent. Despite the denital, the rumors have seen the exchange’s native XY token which drop 62% in just three days in a sign that there could be deeper problems at hand.

Beaxy’s Terrible Start

Beaxy launched in June amid a flurry of hype and promotion, boasting of their implementation of market leading OneTick analytics among other aspects. Confidence in the platform, which took two years to come to market, was badly shaken just two months after launch however when it was revealed that the exchange lost 44 and 111,000 XRP worth $570,000 to hackers via an exploit that had been used on 59 other exchanges. The writer who broke the story of the hack, John Galt, called Beaxy “incompetent” in their approach to the lead up and aftermath of the attack, revealing that the funds in the Beaxy cold wallets were also rapidly depleting, suggesting they might already be insolvent. Beaxy’s poor handling of the event just led to more questions being asked of the exchange, and Hamazaspyan’s sudden absence from social media has only kicked the rumor mill into a higher gear:

The furore led to Beaxy having to clarify matters with a tweet yesterday:

Beaxy’s Response Fails to Reignite Faith

Beaxy’s response didn’t do much to quell the rising tide of concern, possibly because family emergencies and ill health have unfortunately become something of a cliché in the crypto space and, for some, a red flag. With the vultures already circling it certainly wasn’t ideal timing for Hamazaspyan to take a leave of social media absence. Beaxy have put this down to a family emergency, but that hasn’t stopped many making their minds up about the exchange:

Whatever the reason for Hamazaspyan’s absence, it’s pretty clear that he is needed back at Beaxy HQ to help steady the ship like a good CEO would do, otherwise things could get even uglier very quickly.