- HEX founder Richard Heart and SEC lawsuit intensifies as SEC opposes his claims of case dismissal.
- The SEC is battling several lawsuits against leading crypto institutions.
The SEC has become an integral part of the US crypto regulatory landscape, particularly in the past few months. Amid several lawsuits and reexamination of crypto assets, the regulatory body has hawk-eyed crypto institutions. Recently, on August 22, the SEC raised claims against HEX founder Richard Heart.
Notably, the SEC submitted a court filing with the New York District Court opposing HEX founder Richard Heart’s attempts to dismiss the Securities Lawsuit. Moreover, the regulator accused Richard Heart of using investor funds for his luxury purchases.
Additionally, SEC’s lawyers stated that Heart was guilty of Fraud and that he had deceived investors, by promising them greater returns. Previously, the SEC filed the complaint against the HEX founder in July 2023.
The SEC in the court filing stated that:
“Heart misappropriated investor funds worth millions of dollars for personal luxury purchases, including watches, cars, and the so-called largest black diamond in the world.”
Secondly, the SEC alleged that Heart raised $1 billion worth of funds and sold HEX as a security crypto asset. Meanwhile, in regards to PulseChain and PulseX, Heart was accused of raising $354 million to develop PulseChain ‘a purported fork’ on the Ethereum Network.
How is HEX Defending the SEC’s Claims?
Meanwhile, HEX lawyers have stated that the alleged claims don’t stand as Richard Heart had not promised anything to investors. They stated that HEX functions similar to Bitcoin, as stated in its initial contracts. The lawyers stated that this would negate the SEC’s claims that Heart sold HEX tokens as securities.
Additionally, they also stated that Richard Heart didn’t violate any US form of conduct as he currently lives abroad. Moreover, the lawyers also stated that HEX, PulseChain, and PulseX are blockchain technologies and not securities.
However, the SEC has declined these arguments, stating that Richard Heart cannot deny his claims by saying ‘he lived abroad’. The regulator also failed to agree with HEX saying Heart didn’t promise anything.
Finally, the SEC is also currently combating cases against crypto ecosystem Ripple and one of the leading exchanges Coinbase according to sources.
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