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SEC Sues Internet Marketer Richard Heart and His Projects for Alleged Securities Fraud
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against internet marketer Richard Schueler, also known as Richard Heart, and his projects Hex, PulseChain, and PulseX. The SEC alleges that Heart raised over $1 billion through three unregistered securities offerings starting in 2019.
According to the lawsuit, Heart not only failed to register these securities offerings but also defrauded his investors by using their funds for personal expenses. The SEC claims that Heart touted these investments as a pathway to immense wealth for investors, making grandiose claims about the potential of Hex, for example. However, he did not disclose that he used millions of dollars from PulseChain investor funds to purchase luxury goods for himself.
The launch of PulseX and PulseChain earlier this month faced significant challenges, including high fees, liquidity issues, and exploitable bugs. As a result, the prices of the HEX, PLS, and PLSX tokens fell after their launch.
The SEC further alleges that Heart frequently referenced federal securities laws in his YouTube livestreams and public statements. However, the lawsuit states that Heart himself admitted that the success of these projects relied entirely on his efforts.
“Heart pumped Hex’s capacity for investment gain, claiming at Hex.com that it was designed to surpass Ethereum and become the highest appreciating asset in history,” the lawsuit stated. Heart also claimed that Hex’s USD price had increased 115 times in just 129 days.
The SEC has charged Heart and his projects with fraud and securities registration violations. Heart has not yet commented on the lawsuit.
Eric Werner, the SEC Fort Worth Regional Office Director, emphasized that the lawsuit aims to protect the investing public and hold Heart accountable for his actions.
UPDATE (July 31, 2023, 14:55 UTC): The SEC has provided additional details regarding the case.
What are the allegations made by the SEC against internet marketer Richard Heart and his projects Hex, PulseChain, and PulseX?
SEC Sues Internet Marketer Richard Heart and His Projects for Alleged Securities Fraud
In a shocking turn of events, internet marketer Richard Schueler, widely known as Richard Heart, and his projects Hex, PulseChain, and PulseX are now facing a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The SEC alleges that Heart has raised an astonishing $1 billion through three unregistered securities offerings since 2019.
The lawsuit claims that Heart not only neglected to register these securities offerings as required by law but also deceived his investors by misappropriating their funds for personal use. The SEC alleges that Heart painted a picture of immense wealth and ultimate prosperity for his investors, making extravagant promises about the potential of Hex. Despite these claims, Heart failed to disclose that he had been using millions of dollars from PulseChain investor funds to splurge on luxury items for himself.
Recent releases of PulseX and PulseChain have encountered significant obstacles, including exorbitant fees, liquidity problems, and exploitable bugs. Consequently, the prices of HEX, PLS, and PLSX tokens took a nosedive following their launch.
Moreover, the lawsuit reveals that Heart frequently made references to federal securities laws in his YouTube livestreams and public statements. Paradoxically, the SEC alleges that Heart himself confessed that the success of his projects relied solely on his individual efforts.
The lawsuit quotes Heart’s extravagant claims, stating that he had hyped Hex’s potential returns and boasted that it was designed to surpass Ethereum and become the most lucrative asset in history. Heart further claimed that the USD price of Hex had skyrocketed 115 times in just 129 days.
Heart and his projects now face charges of fraud and securities registration violations. Heart has yet to issue a statement regarding the lawsuit.
Eric Werner, Director of the SEC Fort Worth Regional Office, emphasizes that the lawsuit’s intent is to safeguard the investing public and hold Heart accountable for his alleged actions.
UPDATE (July 31, 2023, 14:55 UTC): New details released by the SEC shed further light on the case.
This lawsuit by the SEC against Richard Heart and his projects Hex, PulseChain, and PulseX underscores the importance of complying with securities regulations. It serves as a reminder that fraudulent activities in the crypto industry will not be tolerated.