Richard Schueler, widely known as Richard Heart, is currently entangled in a legal battle, as he is being sued by the U.S. SEC. The lawsuit alleges that he engaged in unregistered securities offerings for three of his projects – Hex, PulseChain, and PulseX, collectively raising over $1 billion in funds, starting in 2019.
The SEC’s complaint, filed on July 30, accuses Heart of deception, claiming that he misused investor funds for personal expenses, indulging in luxury purchases and personal interests. Heart had promoted these investments, stating they would yield exceptional financial returns. For example, he touted Hex as a remarkable asset with an unparalleled appreciation potential for humanity.
Curiously, Heart failed to disclose that a significant portion of PulseChain’s investor capital was being used for personal luxuries. The projects, PulseX and PulseChain, experienced a bumpy start with issues related to high transaction fees, liquidity problems, and susceptibility to exploits, leading to a decline in the prices of their associated tokens – HEX, PLS, and PLSX – after launch.
In an unexpected twist, the SEC also claims that Heart often made references to federal securities laws in his public communications and YouTube live streams. Despite this, he admitted that the success of his projects relied heavily on his personal efforts.
Heart extensively emphasized the potential financial gains of Hex on his website and during a marathon seven-hour YouTube live stream. He claimed that Hex was designed to outperform Ethereum (ETH), and he pointed to the early price increases as proof of its success.
As of now, Heart has not issued any comments on the allegations. Eric Werner, the director of the SEC Forth Worth Regional Office, expressed that the lawsuit aims to protect investors and hold Heart accountable for his actions.