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Hex Founder Richard Heart’s Lawsuit Gets SEC Response

August 23, 2024 - Around 2 mins mins to read

Key Points:

  • The SEC has rejected Hex founder Richard Heart’s attempt to dismiss the lawsuit.
  • Heart is accused of misusing $8.9 million in investor funds for luxury purchases and manipulating the Hex staking product.
The U.S. Securities and Exchange Commission is pushing back against efforts to dismiss the lawsuit by Hex founder Richard Heart.
Hex Founder Richard Heart's Lawsuit Gets SEC Response

Read more: SEC Sues HEX Founder Richard Heart For $1 Billion Securities Fraud

SEC Claims Jurisdiction in Hex Founder Richard Heart’s Lawsuit

In an updated court filing published Thursday, the SEC claimed it has jurisdiction to pursue the case against Hex founder Richard Heart. It asked the U.S. District Court for the Eastern District of New York to deny Heart’s motion to dismiss.

The SEC filed the lawsuit in 2023, claiming Heart—also founder of PulseChain—conducted more than $1 billion in unregistered securities offerings. According to the complaint, he used about $8.9 million of the investors’ money to buy such lavish articles as Ferraris, designer clothes, and a $4.3 million black diamond called Enigma.

The SEC also alleges that Heart marketed Hex as a staking product promising investors a return of 38%, and most of the demand for Hex was manipulated with as high as 97% of the Ethereum used being recycled back into crypto exchanges.

Heart’s Defense Team Brushes off Fraud, Misuse Allegations

Heart’s legal team has rejected the SEC’s claims, saying that Hex, PulseChain, and Pulse X are decentralized blockchain technologies like Bitcoin and should be treated as decentralized; indeed, the SEC did not treat Bitcoin as a security.

They said Hex founder Richard Heart, who lives overseas, never defrauded his investors because he has never promised to pay them back. The case is now set for a hearing on Oct. 24. Richard Heart also responded recently to SEC’s opposition.

In parallel developments, the Ninth Circuit Court of Appeals has reportedly partially overturned the dismissal of a class action against Binance.US over the alleged manipulation of the HEX cryptocurrency price. It remains to be seen how these legal battles will end as Heart’s opposition to the SEC’s claims unfolds.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Binance.US

HEX

PulseChain

Richard Heart

SEC

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Hex Founder Richard Heart’s Lawsuit Gets SEC Response

Key Points:

  • The SEC has rejected Hex founder Richard Heart’s attempt to dismiss the lawsuit.
  • Heart is accused of misusing $8.9 million in investor funds for luxury purchases and manipulating the Hex staking product.
The U.S. Securities and Exchange Commission is pushing back against efforts to dismiss the lawsuit by Hex founder Richard Heart.
Hex Founder Richard Heart's Lawsuit Gets SEC Response

Read more: SEC Sues HEX Founder Richard Heart For $1 Billion Securities Fraud

SEC Claims Jurisdiction in Hex Founder Richard Heart’s Lawsuit

In an updated court filing published Thursday, the SEC claimed it has jurisdiction to pursue the case against Hex founder Richard Heart. It asked the U.S. District Court for the Eastern District of New York to deny Heart’s motion to dismiss.

The SEC filed the lawsuit in 2023, claiming Heart—also founder of PulseChain—conducted more than $1 billion in unregistered securities offerings. According to the complaint, he used about $8.9 million of the investors’ money to buy such lavish articles as Ferraris, designer clothes, and a $4.3 million black diamond called Enigma.

The SEC also alleges that Heart marketed Hex as a staking product promising investors a return of 38%, and most of the demand for Hex was manipulated with as high as 97% of the Ethereum used being recycled back into crypto exchanges.

Heart’s Defense Team Brushes off Fraud, Misuse Allegations

Heart’s legal team has rejected the SEC’s claims, saying that Hex, PulseChain, and Pulse X are decentralized blockchain technologies like Bitcoin and should be treated as decentralized; indeed, the SEC did not treat Bitcoin as a security.

They said Hex founder Richard Heart, who lives overseas, never defrauded his investors because he has never promised to pay them back. The case is now set for a hearing on Oct. 24. Richard Heart also responded recently to SEC’s opposition.

In parallel developments, the Ninth Circuit Court of Appeals has reportedly partially overturned the dismissal of a class action against Binance.US over the alleged manipulation of the HEX cryptocurrency price. It remains to be seen how these legal battles will end as Heart’s opposition to the SEC’s claims unfolds.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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