It’s like déjà vu all over again. If the SEC says true and the whole thing turns out to be a gigantic scam, it will be one more argument for all the detractors of crypto. He’ll still be a cool, friendly entrepreneur who communicates on social networks with his fans, promising them the best, while he spends their money on his own account. According to information from the American regulator, Richard Scheuler is said to have recovered nearly one billion dollars through its three flagship projects: the ERC20 token Hex and protocols PulseChain and PulseX. Not only would it be a massive violation of securities lawbut there were also price manipulation and, above all, personal use of customer funds. We detail all the Securities and Exchange Commission’s accusations.
Richard Scheuler allegedly recovered more than $1 billion …
The SEC has a new target at the beginning of August, and it’s Richard Scheuler. Richard Scheuleras can be read in press release from Eric Werner, Director of the SEC in Fort Worth. The man better known under the pseudonym of Richard Heart would have :
« called on investors to buy crypto asset securities in offerings he did not register. He then defrauded these investors by spending a portion of their crypto assets on exorbitant luxury goods. »
Since at least 2009he promoted his token HEX and the various protocols he developed under the names PulseChain and PulseX. He made a series of statements deemed misleading by the SEC, including the following:
« Hex was designed to outperform Ethereum and Bitcoin and all other cryptocurrencies »; » [Hex] was designed to be the most valued asset that has ever existed in the history of man. »
Richard Heart during a livestream in December 2019
« If you want to get rich, [Hex est] designed for that »; « Hex is designed to outperform ETH. »
Richard Heart live on YouTube November 8, 2019
As a final example, in 2020 a program entitled « BigPayDay which created, again according to the SEC, a reasonable expectation of profit and therefore meets the definition of a financial security.
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…with which he bought watches, luxury cars and diamonds
Of course, none of this was real, and this famous token HEX made no one rich, except for its con artist founder. He even had the nerve to claim to support « freedom of expression through his various projects ».which is a bit rich when you consider what he’s done with the money he’s earned. Here is an inventory of his luxurious purchases for more than 12 million including a McLaren, a white Ferrari Roma, several Rolexes and other luxury watches, but above all, the highlight of the show: a black diamond.
But not just any diamond, no, the gentleman gave himself one of the biggest in the world. for over 4 million dollars ! Named The Enigmait was bought at Sotheby’s with a mix of ETH and fiat currency. Last but not least, he didn’t just buy luxury items with this embezzled money, as he also took advantage of it to increase his portfolio personal crypto of several million in ETH. He generated thousands of transactions on his DeFi platforms to artificially create volume, convince new buyers and pocket transaction fees.
For the sake of completeness, the proceedings will be held at New Yorkas a large number of transactions took place on Uniswap and that the protocol’s developers are based in Brooklyn. What’s more, investors in the plummeting project are also domiciled in the Big Apple, which explains the SEC’s decision. Another day in crypto, one more revelation we could have done without.
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