Last year in November, we discussed the allegations related to an ongoing investigation. Now, the lawsuit has been filed. The price of the altcoin plummeted with the news of the lawsuit. SEC Chairman Gensler had previously stated that he would not turn a blind eye to irregularities in cryptocurrencies and that the lawsuits would continue.
Lawsuit Against Hex and Pulsechain
SEC has filed a lawsuit against Richard Schueler, also known as Richard Heart, for alleged unregistered securities sales in the crypto industry. Heart is the founder of Pulsechain, PulseX, and Hex projects. According to SEC, Heart raised over $1 billion by selling tokens for these projects and made comments suggesting that the value of Hex would increase. SEC alleges that Heart misappropriated at least $12 million of customer funds and used them for personal purchases of luxury items instead of developing the protocols.
When we shared the news of the investigation last November, we mentioned the individuals whose statements were taken. Now, we see that SEC has completed the investigation and officially filed the lawsuit. This means that more altcoins could be sued by SEC in the coming weeks. In fact, Gensler stated during the recent budget session that “we need more support to go after fraudsters.”
HEX price initially dropped by 11.9% following the circulation of the news.
