Richard Heart, founder of HEX, PulseChain and PulseX projects has been sued by SEC. He raised more than 1-billion dollars in unregistered offer and sale of crypto asset securities to US and non-US investors.
HEX has been down more than 84-percent this year. While this is clearly an open and shut case and we always thought this was going to happen, the issue is Richard Heart is not even his real name and his whereabouts are unknown.
Also, HEX lured naive investors by offering unreal 69-percent yield YoY which is eerily similar to FTX token. This is bound to be easiest layup of all time for the SEC and we are surprised that it took them 4-5 years to bring this.
On the contrary, there could be several headaches in keeping him behind bars. We would not agree that he sold securities, but he did commit straight up fraud with the adoption amplifier in HEX. We believe he should be punished but we do not see the charges holding up that well.
HEX is still a 1-billion dollar project and a lot of zeros are yet to be removed from its market-cap over the next few days.