US SEC sues crypto entrepreneur Richard Schueler: Illegally raised $1 billion, deceived investors, used funds to buy sports cars

Renowned cryptocurrency entrepreneur Richard Schueler Richard Heart is accused by the U.S. Securities and Exchange Commission (SEC) of illegally issuing securities, deceiving investors, and misappropriating funds for non-development purposes. Both of his projects, Hex and PulseChain, are under scrutiny.

SEC Files Lawsuit: Hex and PulseChain Accused of Unregistered Securities

The U.S. Securities and Exchange Commission (SEC) has filed a significant lawsuit against prominent cryptocurrency entrepreneur Richard Schueler, better known as Richard Heart. The SEC accuses Richard Heart's companies Hex and PulseChain of conducting unregistered securities sales. The lawsuit revolves around Heart allegedly raising over $1 billion through the sale of tokens for his companies.

SEC's Allegations: Control, Investment Promotions, Lockup Rewards

The SEC's allegations include Heart's control over these projects, statements he made about the potential for these projects to appreciate, and the lockup feature he created for exchanging more tokens. In particular, Heart publicly implied that Hex would appreciate and referred to it as "the most valuable asset in history." The SEC points out in the lawsuit that such statements could mislead investors.

Token Value Collapse and Misappropriation of Funds Allegations

The lawsuit states that the company's token values experienced drastic fluctuations. Hex's price plummeted by 98.4% from its all-time high, while the tokens for PulseChain and PulseX were almost worthless. Additionally, the SEC accuses Heart of using at least $12 million of customer funds to purchase luxury items, including a McLaren sports car, a Ferrari, and five watches, instead of using them for developing related protocols as claimed, thereby deceiving investors.