The SEC sued Richard Scheler.
The US Securities and Exchange Commission (SEC) has sued Richard Schueler, known as Richard Heart. The SEC’s claim is Heart’s unregistered sale of securities.
SEC sues Richard Heart for allegedly selling unregistered securities
The United States Securities and Exchange Commission (SEC) has filed a lawsuit alleging unregistered sale of securities to Richard Schueler, also known as Richard Heart. Richard Heart is the founder of the controversial Pulsechain, PulseX, and Hex projects, and has allegedly raised more than $1 billion in total for these projects.
During the lawsuit, the SEC argued that Heart’s Hex, PulseChain, and PulseX projects violated federal securities laws through the unregistered sale of securities, as well as being defrauded through the misappropriation of investors’ assets.
At the heart of the lawsuit is Heart’s use of the staking feature, in which token holders lock their tokens to earn more tokens, making statements that by taking control of the project the value of the project will increase.
The SEC also noted that Heart had previously misled investors by claiming that Hex’s value would increase significantly. In the lawsuit, it was noted that Hex’s value fell 98.4 percent from its all-time high, and the tokens of the other two projects became almost worthless.
Additionally, the SEC alleges that Heart defrauded investors by using at least $12 million in client funds for its own personal luxury products. These luxury items included a McLaren sports car, a Ferrari and five watches.
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