SEC Sues Richard Heart Over Unregistered Securities and Fraud Allegations

2023-08-01 02:04:20

Author: Nikhilesh De, CoinDesk; Compiler: Songxue, Jinse Finance

**The U.S. Securities and Exchange Commission (SEC) has sued Internet marketer Richard Schueler, known online as Richard Heart, and his projects Hex, PulseChain, and PulseX, alleging he raised more than $1 billion in three different unregistered securities offerings starting in 2019 Dollar. **

**Heart also defrauded investors by using investor funds to purchase personal items, the SEC said in Monday’s lawsuit. **

“Heart continually touted these investments as a path to enormous wealth for investors, and claimed that Hex was ‘the most appreciating asset in human history,’” the lawsuit states. Liberal purpose, but he did not disclose that he used millions of dollars of PulseChain investor funds to buy luxury goods for himself.”

PulseX and PulseChain have struggled within weeks of going live, with high fees, liquidity issues, and exploitable bugs. The prices of HEX, PLS and PLSX tokens dropped after the launch.

The SEC further alleges that Heart routinely invokes federal securities laws, citing his YouTube livestreams and other public statements. However, Heart himself acknowledged that “these successes were solely attributable to his efforts,” the lawsuit says.

"Hex ROI improved, claims on Hex.com (at least as of Nov 1, 2020): 'Hex is designed to outperform ETH, which has risen 10,000x in price in 2.5 years. It’s working Work! To date, the USD price of HEX has increased 115 times in 129 days,” the lawsuit states. During a seven-hour live stream on YouTube on December 2, 2019, hours before Hex’s launch, Heart stated that Hex “aims to outperform Ethereum, Bitcoin, and all other cryptocurrencies. "

The lawsuit accuses Heart and the projects of fraud and securities registry violations.

Heart could not immediately be reached for comment. Eric Werner, director of the SEC’s Fort Worth Regional Office, said in a statement that the lawsuit “is designed to protect the investing public and hold Heart accountable for its actions.” **

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