News · Regulation & Policy
The regulator alleges Richard Schueler misappropriated at least $12 million in investor assets for luxury purchases while conducting unregistered sales of HEX, PLS, and PLSX.
Key point 1 of 3
01
The SEC filed fraud and unregistered securities offering charges against Richard Heart, Hex, PulseChain, and PulseX over $1 billion raised.
Key point 2 of 3
02
Regulators allege Heart misappropriated at least $12 million in offering funds to buy sports cars, watches, and a 555-carat black diamond.
Key point 3 of 3
03
The complaint targets unregistered token offerings of HEX, PLS, and PLSX, alleging attempts to bypass securities laws via 'sacrifice' schemes.
Context
Heart launched Hex in 2018 and later raised capital for PulseChain and PulseX, relying on token lockups and aggressive marketing that promised high yields to participants.
Why it matters
Holders of HEX, PLS, and PLSX face immediate legal and regulatory overhang, while the broader crypto industry sees continued SEC scrutiny of staking and 'sacrifice'…
What to watch
Proceedings in the US District Court for the Eastern District of New York, including Heart's legal response and formal defense filings against the SEC complaint.
Sources
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