According to the official filing from SEC, Richard Heart along with his three unincorporated entities HEX, PulseX, and PulseChain are charged for selling unregistered securities.
Richard Heart is the founder of PulseChain and an asset trading platform PulseX. He launched the HEX token in December, 2019. PulseChain is an Ethereum fork blockchain network.Â
The SEC said that Richard has ‘conducted unregistered offerings of crypto asset securities that raised more than $1 billion in crypto assets from investors.’ The SEC has also charged him with $12 million fraud for purchasing luxury goods from the money raised in offering.
Richard began marketing the HEX token as ‘blockchain certificate deposit’ in 2018 and later promoted the token as an investment designed to make people rich. He offered and sold HEX tokens collecting more than 2.3M ETH in the time period of December 2019 to November 2020.
He is accused of spending PulseChain investors’ funds on sports cars, Rolex watches and ‘The Enigma’ diamond, all costing approximately $12 million.
Richard Heart calls himself a ‘Force for good’, ‘who makes the world a better place’ on his personal website. HEX token’s website states that its long term goal is to replace credit cards and payment companies.
SEC has turned fully anti-crypto recently with it charging several crypto companies. The leading exchange Coinbase was sued by the SEC recently in its crackdown on all things crypto.
