SEC sues Hex founder Richard Heart

A sports car and a 555-carat diamond allegedly bought Hex and Pulsechain founder Richard Heart with his investors' money. After the SEC made the allegations, the price of the tokens collapsed.

The US Securities and Exchange Commission (SEC) has sued Hex founder Richard Heart and his projects Hex, Pulsechain and PulseX. This is stated in the SEC's official press release. According to the statement, Heart has raised more than one billion US dollars with three unregistered securities issues. In addition, the controversial crypto entrepreneur defrauded his investors, according to the SEC's indictment.

"Heart asked investors to buy crypto securities that he had not registered," he said. adds.

Luxury Goods

With the investors' money, Heart allegedly bought luxury goods, "including sports cars, watches and a 555-carat black diamond, reportedly the largest black diamond in the world." The SEC also alleges that Heart and Pulsechain violated the anti-fraud provisions of the federal securities laws. Several stories circulate about Hex's founder involving scams and dishonest deals. These stories often involve spam emails, which gave Heart a reputation as the "spam king."

The Hex Token (HEX) is trading at US$0.0058 at the time of writing and has fallen by as much as 30 percent in the past 24 hours. The Pulsechain Token (PLS) has also plummeted by nearly 40 percent.

Also read: SEC sues crypto project Quantstamp.