The US Securities and Exchange Commission (SEC) has filed a complaint against Richard Schueler, also known as Richard Heart, alleging that he raised over $1 billion in unregistered securities offerings from retail investors in the United States and abroad.
The SEC claims that Heart operated through three unincorporated alter-ego entities, Hex, PulseChain, and PulseX, and engaged in three separate offerings since December 2019.
Per the complaint, each offering was a crypto asset security, and PulseChain and PulseX were platforms designed, created, and maintained by Heart.
Between December 2019 and November 2020, Heart accepted more than 2.3 million ether from investors, worth over $678 million at the time of deposits, and issued Hex tokens to investors.
However, the SEC claims that 94-97% of these deposits were “recycling” transactions directed by Heart or other insiders, which enabled them to gain control of a large…
