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US SEC launches action against Richard Heart and his crypto projects

Press Releases Crypto News AMB-Crypto US SEC launches action against Richard Heart and his crypto projects

US SEC sues Richard Heart and three of his projects for unregistered sale of securities and fraud
The commission claimed that Heart used investors’ money to purchase luxury goods including the world’s largest black diamond

The United States Securities and Exchanges Commission (SEC) continues to take action against crypto projects despite its partial loss against Ripple. This time, the regulatory authority launched a lawsuit against Richard Heart alias Richard Schueler, a well-known crypto content creator.

The legal action also extends to his projects – PulseChain, an Ethereum fork, PulseX, a Uniswap fork, and HEX, an ERC20 token.

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The commission alleges that Heart and his projects violated the securities law by “conducting unregistered offerings,” which raised over $1 billion. The regulatory authority also brought in additional fraud charges against Heart and Pulsechain.

It claimed they “misappropriated at least $12 million of offering proceeds” to buy luxury goods. The purchased items included “‘The Enigma’ – reportedly the largest black diamond in the world.”

The Director of the Fort Worth Regional Officer, Eric Werner, said, “Heart called on investors to buy crypto asset securities in offerings that he failed to register. He then defrauded those investors by spending some of their crypto assets on exorbitant luxury goods”. The officer further added,

“This action seeks to protect the investing public and hold Heart accountable for his actions.”

SEC alleges securities offerings

Notably, while speaking about the offerings of HEX, PulseX, and Pulsechain, the SEC claimed all three were securities. Additionally, the action against Pulsechain comes just a few months after its fork from Ethere

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Author: Priya NV

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