Richard Heart, whose actual name is Richard Schueler, is a well-known internet marketer and supporter of cryptocurrencies. The US Securities and Exchange Commission (SEC) has filed a civil lawsuit against him. According to the SEC, Heart deceived investors in order to raise more than $1 billion via unregistered securities offerings. Heart is linked to initiatives including Hex, PulseChain, and PulseX, and it has also come under fire for allegedly diverting investor money for personal needs.
Heart marketed a number of initiatives as means of achieving significant riches, including Hex, which it billed as the first blockchain certificate of deposit, and PulseChain, a layer-1 blockchain. He reportedly made the assertion that Hex will become “the highest appreciating asset that has ever existed in the history of man” and that the success of the endeavors totally rested on his efforts.
According to the SEC’s complaint, Heart stole at least $12.1 million from PulseChain’s investors to spend on luxury items for himself, including a 555-carat black diamond, costly watches, and luxury automobiles. It is alleged that these practices, which diverted monies intended for project development to personal expenses, violated federal securities laws.
The SEC is suing Heart for civil fines, disgorgement of ill-gotten proceeds with prejudgment interest, and permanent injunctive relief in response to the claims.
The SEC will be working harder in 2023 to ensure that the cryptocurrency business complies with securities rules, which is why the complaint against Heart is being brought. The SEC is said to regard practically all other cryptocurrencies as securities, according to reports that surfaced over the weekend, and ordered Coinbase to suspend trading in all cryptocurrencies other than bitcoin. This position is in line with that of SEC Chairman Gary Gensler, who often states that all cryptocurrencies—aside from bitcoin—should be categorized as securities.
Before the SEC took legal action, problems with liquidity, excessive fees, and easily exploitable vulnerabilities soon after debut plagued Heart’s ventures. His projects’ HEX, PLS, and PLSX tokens had notable drops of 99%, 87%, and 97% from their all-time highs.
After the SEC filed its complaint, the values of the HEX, PLS, and PLSX tokens fell even further on Monday. HEX fell by 30% to its lowest level since December 2020, PLS fell by more than 40% to almost record lows, while PLSX fell by close to 50% to its lowest level since its introduction in May.
Heart’s projects face substantial difficulties as a result of the scenario, which has led to increased regulatory scrutiny and large price cuts in the market. The projects have failed to live up to expectations.
