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The SEC has charged Richard Heart, the founder of the crypto project Hex, with allegedly conducting unregistered securities offerings that raised more than $1 billion.
The Commission also included three unincorporated entities in its charges: PulseChain, PulseX, and Hex.
Heart and PulseChain are also both facing charges for allegedly using $12 million in the offerings proceeds to buy luxury goods, including a 555-carat black diamond called "The Enigma."
"Heart began marketing Hex in 2018, claiming it was the first high-yield 'blockchain certificate of deposit,' and began promoting Hex tokens as an investment designed to make people 'rich,'" read the SEC's complaint.
The complaint continues, adding that Heart introduced a staking feature into the Hex token which promised users returns as high as 38%.
Editor's note: This story is breaking and will be updated shortly.