According to BlockBeats, on August 23, the U.S. Securities and Exchange Commission (SEC) rejected Hex founder Richard Heart's attempt to dismiss the lawsuit against him, asserting its right to proceed with the case. The SEC accuses Heart of raising over $1 billion through unregistered securities offerings and using the funds for personal luxury expenses. Heart's legal team argues that Hex, PulseChain, and PulseX are not securities and that Heart did not promise investment returns, thus not constituting fraud. However, the SEC maintains that these assets are investment contracts and fall under the category of securities. The next hearing is scheduled for October 24.
Previously, on July 31, the SEC filed a lawsuit against Richard Schueler, also known as Richard Heart, alleging the sale of unregistered securities in violation of federal securities laws. Richard Heart is the founder of the PulseChain, PulseX, and Hex projects. The SEC claims that Heart misappropriated at least $12 million of customer funds for personal luxury purchases instead of developing the protocols, thereby deceiving investors.
