decrypt.co
31 July 2023 12:12, UTC
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."
Point your phone camera to install
4.8 based on 40K reviews in the App Store and Google Play
"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.
