Hex crypto founder ‘scammed’ investors for luxurious life, SEC beckons

Richard Heart, the founder of Hex token(HEX) and trading platform Pulse X, is facing dire lawsuits from the U.S. Security and Exchange Commission for allegedly defrauding investors to fund his luxurious needs. Heart, also known as Richard Scheuler, bought the world’s largest black diamond with money the regulator claims were from unregistered entities he controlled.

Richard Heart promised investors the world

The SEC believes the Hex token, Pulse X, and trading network Pulse Chain were Richard Heart’s way of acquiring enough money to achieve what they dubbed “grandiose wealth.” According to Reuters, the financial watchdog filed the lawsuit in Brooklyn federal court earlier this week, listing items Heart purchased after his “subtle swindle.”

The Hex token founder reportedly bought two sports cars(Mclaren and Ferrari) and four Rolex watches, which cost above $3M. Nonetheless, the highlight of his extravagant purchases was “The Enigma,” a 555-carat black diamond once valued at $4.16M during Sotheby’s February 2022 auction.

In the lawsuit, the SEC claimed Heart tricked Hex token investors with disclaimers explaining how the token was not a security. He further promised them high annual returns, precisely 38%, saying Hex was “built to be the highest appreciating asset that has ever existed in the history of man.”

So far, no sources have gotten a comment from the defendant or his lawyer, but the financial watchdog believes he resides in Helsinki, Finland. The SEC is adamant Heart started receiving his wrongful gains back in 2019, per the filed suit. 

Moreover, according to the SEC, HEX had fallen by almost 98% of its initial price by the end of June this year, and any offerings issued by Pulse X and Pulse Chain are worthless. Per Reuters, the case file name and number are SEC v Schueler et al, U.S. District Court, Eastern District of New York, No. 23-05749.