The Securities and Exchange Commission (SEC) in the United States has initiated an investigation against Richard Heart, the founder of the popular cryptocurrency Hex, as well as other projects like PulseChain and PulseX. The allegations revolve around misappropriation of funds from investors through unregistered securities offerings based on cryptographic assets, which attracted over a billion dollars in capital.
According to the SEC, Heart allegedly received over 2.3 million ethers, which was equivalent to approximately $678 million at that time, and redirected them to the public address of the Hex wallet. Additionally, he is accused of misappropriating at least $12.1 million from PulseChain investors' funds for personal use, including the purchase of luxury items like a 555-carat diamond, luxury cars, and watches. The charges also include the transfer of $217 million from investor funds to a private wallet.
Moreover, the commission alleges that Heart and his projects sold unregistered securities, a serious offense under financial regulations. The SEC claims that Heart artificially inflated the value of Hex and PulseChain, misleading investors.
As a result of the SEC's actions, the value of PulseX and Hex experienced a significant decline, leading many investors to sell their tokens out of fear of further consequences. Nevertheless, experts believe that this move by the SEC is beneficial for the cryptocurrency industry as it helps weed out fraudsters who exploit the system for personal gain. #HEX #PULSECHAIN