SEC Serves Lawsuit to HEX Founder Richard Heart Amid Accusations of Selling Unregistered Securities
Summary:
The U.S. Securities and Exchange Commission (SEC) has served a lawsuit to HEX founder Richard Schueler, aka Richard Heart, accusing him of misappropriating investor funds and selling unregistered securities. Despite numerous failed attempts to locate Heart for summons delivery, his whereabouts remain unknown, but he continues to be active online. Meanwhile, the value of HEX has seen a significant drop, plummeting 99% since its all-time high in September 2021.
The U.S. Securities and Exchange Commission (SEC) revealed that a lawsuit has been issued to Richard Schueler, founder of HEX also known as Richard Heart, at his residence in Helsinki, Finland. As per a district court filing in New York dated December 11, the organization confirmed executing Heart's summons via substitute service on October 31, resorted to when the sued party cannot receive the lawsuit in person, generally resulting from challenges in finding their whereabouts. According to the individual responsible for the process, numerous unsuccessful attempts were carried out from September 13 for nearly seven weeks, which included phone calls, text messages, letters, and in-person attempts at Heart's Finnish home.
Heart became the target of a lawsuit by the SEC back in July, the body accusing him of gaining over $1 billion by selling unregulated securities, namely Hex, PulseChain (PLS), and PulseX (PSLX). In addition, it was alleged Heart misappropriated $12 million or more from investors within and outside the U.S., using these funds for luxury purchases that included an ultra-expensive 555-carat diamond, premium watches, and high-end cars.
In an early November filing to the court, the SEC noted that they were unable to locate Heart post-August 22 to deliver the lawsuit, despite knowing his general location in Helsinki.
Although Heart has been secretive about his exact location, it hasn't hindered his perpetual online activity. Since the SEC's report that came out on November 21, Heart's Twitter activity includes over 40 cryptocurrency-focused posts, touching on subjects like the Department of Justice's settlement with Binance in November, the trial of Sam Bankman-Fried, and updates related to Do Kwon.
In the meantime, the value of HEX has seen a drastic fall of 81.5% throughout the previous year and plummeted 99% since its peak price of $0.5 on September 19, 2021, as reported by CoinGecko data.
To highlight Helsinki's relationship with cryptocurrency, in 2009, a person reportedly obtained 5,050 Bitcoins just for $5, which is now considered as the city's significant connection with the crypto world.
Published At
12/13/2023 5:08:20 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.