SEC and Richard Heart Continue to Tense on Crypto

The SEC said that Heart raised over $1 billion through three different unregistered securities offerings.

SEC and Richard Heart Continue to Tense on Crypto

The SEC filed a lawsuit against internet marketer Richard Schueler, also known online as Richard Heart, and his ventures Hex, PulseChain, and PulseX, saying that he raised more than $1 billion through three unregistered securities offerings starting in 2019. Heart allegedly used investor monies for personal purchases in addition to defrauding his investors, according to the SEC‘s lawsuit filed on Monday.

Heart continually touted these investments as a pathway to grandiose wealth for investors, claiming that Hex, for example, ‘was built to be the highest appreciating asset that has ever existed in the history of man,’. Although Heart claimed these investments were for the vague purpose of supporting free speech, he did not disclose that he used millions of dollars of PulseChain investor funds to buy luxury goods for himself.

The Lawsuit

SEC Cites Hearth’s YouTube Videos

The SEC additionally claimed that Heart frequently made mention of federal securities regulations, citing his YouTube live streams and other out-in-the-open utterances. However, the lawsuit claimed that Heart had acknowledged that his own efforts were the only thing that could guarantee these undertakings’ success.

Heart pumped Hex’s capacity for investment gain, claiming at Hex.com (until at least November 1, 2020) that, “Hex is designed to surpass ETH, which did 10,000x price in 2.5 years. It’s working! So far, HEX’s USD price went up 115x in 129 days,”

On December 2, 2019, during a seven-hour livestream on YouTube hours before the Hex Offering commenced, Heart stated that Hex was built to outperform Ethereum and Bitcoin, and all other cryptocurrencies.

The Lawsuit

Token Prices Drop

Earlier this month, PulseX and PulseChain launched, but they had a difficult time getting off the ground due to excessive fees, liquidity problems, and exploitable vulnerabilities. Following its debut, the HEX, PLS, and PLSX token prices decreased.

What Exactly is the Reason for the Lawsuit?

In the lawsuit, fraud and violations of securities registration are leveled against Heart and the projects. Heart could not be reached for comment right away. The lawsuit aims to safeguard the investing public and hold Heart accountable for his deeds, according to Eric Werner, director of the SEC’s regional office in Fort Worth.

Richard Heart Attracted Suspicion for Buying the World’s Largest Black Diamond

Online entrepreneur Richard Heart has been accused by the U.S. Securities and Exchange Commission of fraudulently soliciting more than $1 billion through three unregistered cryptocurrency offerings and cheating investors out of $12.1 million to purchase luxuries like the largest black diamond in the world. Additionally, he was accused of using money from PulseChain investors to purchase Ferrari and McLaren sports cars, four $3.02 million Rolex watches, and The Enigma, a 555-carat black diamond that sold for 3.16 million British pounds (then $4.28 million) at a Sotheby’s auction in February 2022.