• The SEC is accusing Richard Heart, founder of Hex and PulseChain, of using investor funds to purchase lavish items such as cars and jewelry.
• Most notably, Heart purchased the world’s largest carbonado black diamond known as „The Enigma“ for $4.3 million in 2022.
• The SEC is now taking legal action against Heart in order to hold him responsible for his actions.
SEC Accuses Richard Heart of Fraudulent Activity
Founder of Hex and PulseChain, Richard Heart has come under fire from the Securities and Exchange Commission (SEC) over alleged scam activities involving investor funds. It is alleged that instead of investing the money into advancing “free speech” as he claimed, he used it to fund his extravagant lifestyle – including purchasing a McLaren sports car worth $534,916, a Ferrari Roma valued at $314,125 and a Rolex watch priced at $1.38 million.
World’s Largest Diamond Purchase
Adding to his roster of lavish acquisitions was the world’s largest carbonado black diamond known as “The Enigma” weighing in at an impressive 555.55 carats which he purchased for $4.3 million in 2022 at auction from investor funds. Eric Werner Director of the SEC’s Fort Worth Regional Office stated that investors were encouraged by Heart to purchase crypto asset securities without proper registrationand that he deceived investors using their crypto assets to buy expensive luxury items with their money.
SEC Takes Legal Action Against Richard Heart
The SEC suit aims to ensure that Heart is held accountable for his fraudulent actions and misuse of investor funds by charging him and three unincorporated entities that he controls – Hex, PulseChain and PulseX – with conducting unregistered offerings of crypto asset securities that raised more than $1 billion in crypto assets from investors.
Richard Hearts Response
Heart denies any wrong doing asserting that all spending was directed towards advancing “free speech” however the evidence provided by the SEC appears damning enough to warrant serious legal ramifications if found guilty on all counts.
It remains unclear how this case will play out however it serves as yet another warning sign regarding fraudulent activity within cryptocurrency markets with government agencies finally starting to take notice and take appropriate action where necessary in order to protect innocent investors from being taken advantage off by unscrupulous actors such as Richard Heart who appear intent on lining their own pockets at any cost no matter how unethical or illegal they have been shown be proven be acting..