- Richard Hurt bought diamonds, expensive watches and cars.
- He also promoted tokens as a path to great wealth for investors.
The U.S. Securities and Exchange Commission (SEC) charged Richard Hurt and three companies he controlled – Hex, PulseChain and PulseX – with unregistered offerings of cryptoasset securities.
In addition, the SEC charged Hurt and PulseChain with fraud because they allegedly misappropriated at least $12 million of the funds raised from the securities offering. The millions were spent to buy luxury goods, namely sports cars, watches and a 111-gram black diamond, the regulator said.
“The founder of Hex and PulseChain defrauded investors by misappropriating at least $12.1 million in investor funds. Instead of using these assets to develop and promote the PulseChain network, he spent them for personal luxury purchases,” the complaint says.
The complaint also says Richard Hurt promoted the tokens as a path to great wealth for investors.
The regulator is seeking compensatory damages, interest and civil penalties against Hurt and his projects. As of this writing, the founder of Hex has been served with a civil subpoena requiring him or his lawyers to file a response to the SEC’s complaint within 21 days.
As of this writing, the HEX token is trading at $0.0058, according to Coinmarketcap:
HEX/USD chart
Reminder, in November 2022, the SEC issued a subpoena to influential people who promoted HEX, Pulsechain, and PulseX.