SEC Faces Difficulty in Serving Lawsuit to Richard Heart, Hex and PulseChain Founder – What’s Going On?
The United States Securities and Exchange Commission (SEC) is encountering difficulties in serving a lawsuit against Richard Schueler, also known as Richard Heart, the founder of Pulsechain, PulseX, and the controversial project Hex.
On July 31st, the SEC filed a lawsuit against Heart for allegedly selling unregistered securities and defrauding investors. The SEC’s lawsuit accused Heart, Hex, PulseChain, and PulseX of violating federal securities laws through the unregistered offer and sale of securities. The complaint focused on the fundraising activities that raised over $1 billion for these projects. The SEC alleged that Heart defrauded investors through misappropriation of funds, diverting at least $12 million for personal purchases, including a McLaren sports car, a Ferrari, and five watches, instead of developing the protocols.
The lawsuit also targeted Heart’s control of the project, his statements regarding potential increases in value, and the staking feature designed to encourage token holders to lock up their tokens in exchange for more tokens. The SEC pointed to Heart’s previous comments claiming that Hex was built to be “the highest appreciating asset” and notes the significant decline in the price of Hex and the perceived worthlessness of tokens for the other two projects.
The SEC noted that the price of Hex experienced a staggering 98.4% decline from its all-time high, and the tokens for the other two projects, PulseChain and PulseX, are described as “practically worthless.” These assertions form the basis of the SEC’s claims of securities law violations, emphasizing the purported misleading statements by Heart regarding the potential appreciation of Hex.
The U.S. SEC is encountering difficulties serving a
