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- 1 The regulator calls out Richard Heart and his entities that generated $1 Billion after selling unregistered securities.
- 2 Richard Heart spent $12 Million of investors’ funds to buy sports cars, expensive watches, and a rare black diamond.
The United States Securities and Exchange Commission (SEC) charges crypto influencer Richard Heart and his three “unincorporated” entities. It includes Heart founded crypto projects: Hex, PulseChain, and PulseX. The US regulator alleges it conducts unregistered crypto securities offerings and accumulated about $1 Billion
In addition to the charges of illegal offerings, Richard Heart claimed to misuse the customers’ investments. The SEC alleges him for misappropriating $12 Million worth of proceedings for expensive and luxury purchases. The purchases included sports cars, expensive watches, and even a black diamond.
Richard Heart Spent $12 Million Investors Fund
Richard Heart reported to own the largest black diamond in 555-carat known as “The Enigma”, which was bought for about $5 Million. He owns a $1.38 Million Rolex, a McLaren sports car worth $535K, and Ferrari Roma for $314K. All of it is said to be bought using the investors’ funds and the SEC alleges Heart to hide the information.
The Finland-based entrepreneur has a YouTube channel that was started in 2017 and now has a subscriber base of 156K. He used it to promote his crypto products—Hex token, PulseChain (PLS), and PulseX.
Hex, the project launched in 2019, currently holds a market cap of over $1 Billion. The exchange platform PulseX is based on the blockchain PulseChain where users can swap their tokens on the network.
The first cryptocurrency token project from Heart, Hex, does not have a good reputation among people. The official website even has a dedicated page for clarification. The other two projects met a similar fate given the connection with the already existing project and its creator. People were always concerned with the fundamentals of projects.
The Projects of Richard Heart With Ill Reputation
According to the SEC, the sale of HEX tokens from 2019 to 2020 was an unregistered securities offering. Heart and Hex initiated the offering and it brought in more than 2.3 Million Ethereum (ETH). Given the current value of ETH, it is currently valued at more than $4.27 Billion.
Richard Heart created PLS and PLSX and the regulator cited them as unregistered cryptocurrencies. About hundreds of millions worth of funds accumulated through sales of these assets, the SEC added. It was, however, used to support PulseChain and PulseX.
The SEC has seen increased scrutiny over the burgeoning asset class industry in the recent past months. Last year had been tough for the broad crypto landscape with many prominent companies falling to the ground. The regulator cites the inefficiency of crypto companies and projects to result in their inefficacies in the contingency.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
