Richard Schueler, also known as “Heart,” is facing legal action from the U.S. Securities and Exchange Commission (SEC) for his involvement in the cryptocurrency projects HEX, PULSECHAIN, and PULSEX.
According to court documents filed in the Eastern District of New York and shared by economist Alex Krüeger on X, the SEC alleges that these projects are in violation of U.S. securities laws.
The SEC finally going after Richard "Heart", the man who promoted worthless HEX coins as "certificates of deposit" pic.twitter.com/HrTtO9Nsf8
— Alex Krüger (@krugermacro) July 31, 2023
After Failing with XRP, SEC Goes After HEX
The lawsuit against Richard Schueler and his cryptocurrency projects is having a significant impact on the value of HEX. In today’s trading session, the token’s value dropped by more than 11% as a direct result of the legal action. This continues a downward trend for HEX, which has seen a loss of 23% over the past two weeks.
According to the SEC, Richard Heart raised over $1 billion by offering unregistered security, the HEX token, to retail investors in the U.S. and abroad, starting in December 2019 and continuing for three years. The regulator alleges that Heart used the platforms PulseChain and PulseX as part of a scheme to raise funds, making grandiose promises of wealth to investors.
The SEC also alleges that Richard Heart misused investor funds to purchase luxury goods for himself, despite publicly advocating for free speech. According to the Commission, Heart misappropriated his investors’ assets and defrauded them.
The SEC recently suffered a setback when a court ruled against their claims in a case against payment company Ripple and its executives, in which the regulator alleged that the company offered unregistered securities.
However, in contrast to the Ripple and XRP case, the cryptocurrency community appears to support the SEC’s actions against Richard Heart, who has been a controversial figure in the industry for years.
The outcome of the SEC’s legal action against Richard Heart is still uncertain, but many members of the cryptocurrency community are supporting the regulator in this case
