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The SEC accused HEX token creator Richard Heart, also known as internet marketer Richard Schueler, and three organizations he controls, Hex, PulseChain and PulseX, of making unregistered securities offerings.
The offerings were made through HEX tokens, which were sold to investors as a “certificate of deposit” based on the Etherium blockchain, officials assure us. The SEC alleges that the 38% annualized return that Schuler advertised was nothing more than a cover for a financial pyramid scheme (Ponzi scheme).
According to the regulator, Richard Hart raised more than $1 billion from investors as a result of the illegal actions.
“Hart repeatedly advertised investing in HEX tokens as a path to incredible wealth. He claiming that HEX is designed to be the most valuable asset that has ever existed in the history of mankind. While Hart claimed that he raised the investments to support free speech, he failed to disclose that he used the funds for the purposes of personal enrichment, maintaining a status lifestyle, and purchasing luxury goods,” the SEC’s lawsuit says.
The commission accused the businessman of fraud and misappropriating $12 million to buy luxury goods, including sports cars, watches and the world’s largest black diamond, the 555-carat The Enigma.
Earlier, the U.S. Securities and Exchange Commission charged
Quantstamp with charges of conducting a regulator-unauthorized ICO and issued $3.5 million in penalties.