US Securities and Exchange Commission (SEC) submitted suing HEX, PulseChain and PulseX founder Richard Hart for alleged sales of unregistered securities.
According to the SEC, the entrepreneur has raised more than $1 billion through the sale of tokens from three projects (HEX, PLS and PSLX) since 2019. The lawsuit notes that he advertised them “as a path to grandiose wealth for investors.”
“Hart urged investors to buy crypto-asset securities in offerings that he could not register. He then deceived these investors by spending part of their funds on luxury goods,” the regulator said.
The lawsuit, filed in the Eastern District of New York, alleges violations of securities laws. In addition, the Commission also accused Hart of fraud – he allegedly embezzled money from PulseChain investors.
“Instead of using these funds to develop and promote the network […]Hart and PulseChain spent at least $12 million on luxury goods,” the SEC added.
In particular, the regulator mentions the rare black diamond The Enigma. In 2006, he entered the Guinness Book of Records as the largest cut diamond in the world. In February 2022, Hart announced himself as the buyer of the stone at Sotheby’s for $4.29 million in crypto.
The agency asked for an injunction, reimbursement of illegally obtained income, as well as payment of interest and penalties.
The HEX token reacted to the news with a fall of 25.3%, according to CoinGecko. The current price is $0.007.
Bitget HEX/USDT hourly chart. Data: TradingView.
HEX and Hart have often been criticized by members of the crypto industry. Analyst under the pseudonym Goldman Sats suggestedthat the project has one goal – to make its creator rich at the expense of other users.
Recall that in November 2022, the SEC sent out subpoenas to influencers who participated in the promotion of HEX, Pulsechain and PulseX. Then members of the community called the news fake.
In 2020, HEX ads appeared during English Premier League football matches. It talked about the growth of the internal token of the platform by 11,500% in 129 days.
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2023-07-31 15:26:55
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