U.S SEC Files Yet Another Lawsuit Over Sale of Unregistered Securities
SEC ETF
Summary: The SEC has filed a lawsuit against Richard Heart, creator of the HEX and PulseChain protocols, for selling unregistered securities. The SEC claims Heart made $1 billion from the sale of tokens related to the PulseChain, PulseX, and Hex protocols. Heart is accused of repeatedly pitching these tokens as a quick way to become rich.
Key Takeaways:
- SEC has launched a lawsuit against Richard Schueler alias Richard Heart.
- The market watchdog estimates that Heart has made $1B from the sale of unregistered tokens.
- All three coins are termed illegal securities as they haven’t been registered as per SEC.
The United States SEC has launched a lawsuit against Richard Schueler alias Richard Heart, the creator of the HEX and PulseChain protocol, for the sale of unregistered securities, in a further resolute enforcement step.
The market watchdog estimates that Heart has made $1 billion from the sale of tokens related to the PulseChain, PulseX, and Hex protocols. According to the financial watchdog, all three coins are illegal securities as they haven’t been registered.
Get Rich Scheme Claim
The SEC found errors in the sales of these assets, and it also accused the entrepreneur of repeatedly pitching them as a method to become rich quickly. Heart was criticized by the SEC for its Staking product, which allows token holders to earn up to 38% on their investments.
The SEC said the entrepreneur’s activities endanger investors, which is why it is prosecuting him. The financial watchdog has issued a press release asking for assistance from anybody in the HEX community who may have relevant information.
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Members of the crypto sector are used to such enforcement proceedings, therefore the SEC’s charge of Richard Heart does not come as shocking. Even if HEX and the PulseChain ecosystems aren’t as widely popular as some of the other Web3.0 projects the SEC has charged, the effects of the case might be seen across the industry. The SEC has been behind the crypto sector for quite a while, claiming that all cryptocurrencies are securities except Bitcoin.
