Even though the US SEC suffered a defeat against Ripple, it continues to maintain its pressure. Now he has sued Richard Schueler, the founder of two altcoin projects. The SEC alleges that Heart is selling unregistered securities, with arguments similar to the Ripple case.
Lawsuit shock from the SEC to the founder of two altcoin projects!
As you follow on Kriptokoin.com, the US Securities and Exchange Commission continues its pressure on the crypto market. In this context, the SEC filed a lawsuit against Richard Schueler, aka Richard Heart, the founder of the HEX and PulseChain protocol for unregistered sale of securities. According to the market regulator, Heart has raised as much as $1 billion in the sale of tokens associated with the PulseChain, PulseX and Hex protocols since its existence. The SEC claims that all three tokens are unregistered securities.
The SEC finds fault with the sale of these assets. The Commission also accuses the internet entrepreneur of constantly promoting these investments as a path to glorious wealth for investors. The market regulator also blames Heart for a Staking product. Because, this staking product provides investors up to 38% returns.
Eric Werner: Heart defrauded investors!
The SEC says these actions are unsafe for investors. Therefore, he states that he justifies the accusations brought against the entrepreneur. As part of the Press Release, the SEC urged members of the HEX community to come forward with information if they had it. Making a statement on the subject, Eric Werner, Director of the Fort Worth Regional Office, said:
Heart has urged investors to buy crypto-asset securities in offers it has not registered. He then defrauded these investors by spending some of his crypto assets on exorbitant luxury goods. This action aims to protect the investing public and hold Heart accountable for its actions.
SEC-HEX lawsuit and its wider implications
The SEC’s accusation of Richard Heart is not a surprise to members of the crypto ecosystem, as they are particularly accustomed to relevant enforcement actions that have been consistent all year. The HEX and PulseChain ecosystems are relatively less popular compared to the other Web3.0 projects the regulator blames. However, the impact of the lawsuit will likely still be felt across the board.
For example, the HEX token is currently in free fall after the lawsuit. Altcoin price has dropped 16.76% in the last 24 hours to $0.007372. HEX is now on the list of altcoins that the US SEC has labeled as a ‘security’, such as Cardano (ADA), Solana (SOL), and Filecoin (FIL).
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