Jul 31, 2023
The Securities and Exchange Commission (SEC) has filed charges against a crypto influencer for allegedly stealing millions of dollars from investors to buy “exorbitant luxury goods” — including the world’s largest black diamond.
Richard Heart (also known as Richard J. Schueler) was charged on Monday with conducting unregistered offerings of crypto asset securities through three entities — Hex, PulseChain and PulseX — which together raised more than $1 billion in crypto assets from investors.
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He was also charged with fraud for misappropriating at least $12 million of offering proceeds to fund his lavish lifestyle and buy sports cars, watches and a 555-carat black diamond known as “The Enigma” — which was sold at auction for a stunning $4.28 million in February 2022.
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SEC blasts bold crypto claims
Heart, 43, began marketing Hex in 2018, according to the SEC complaint. He claimed it was the first high-yield “blockchain certificate of deposit” and said the tokens were “built to be the highest appreciating asset that has ever existed in the history of man.”
The complaint also says he touted Hex, his PulseX asset trading platform and PulseChain asset network as pathways to “grandiose wealth” — but the SEC believes the crypto influencer was tricking investors in order to line his own pockets.
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Civil lawsuit
The SEC’s complaint — filed in the Eastern District of New York — seeks civil fines and the recovery of any gains from alleged wrongdoing.
“This action seeks to protect the investing public and hold Heart accountable for his actions,” said Eric Werner, director of the SEC’s Fort Worth Regional Office.
Hex, PulseX and PulseChain are also named as defendants.
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Bethan Moorcraft is a reporter for Moneywise with experience in news editing and business reporting across international markets.
