The U.S. Securities and Exchange Commission (SEC) sued internet marketer Richard Schueler, known online as Richard Heart, and his projects Hex, PulseChain and PulseX, alleging he raised over $1 billion across three different unregistered securities offerings beginning in 2019.
To the world of regulation and regulatory enforcement. We mentioned it yesterday some news out of the SEC that they are suing Richard Hart, founder of Hex. Hex's everywhere shocked by the allegations included in this action. Some pretty big numbers 1 billion is the alleged amount of unregistered securities that were sold and some pretty interesting details about Richard Hart's personal spending habits, including over a very large black diamonds. I will toss it to Wendy for your thoughts on this action. From the SEC. What do you think? All right. First off, I'm gonna talk about this in a non non-biased stance. This isn't shocking to me that the SEC is going after Richard Hart. Um The SEC has a history of going after some of the largest names in the industry for publicity. We've seen Gary do. Gary Ganzer do this time and time again. However, just remember just because the sec or a public servant or a government entity decides to go after somebody or anyone in crypto doesn't mean that the allegation are true. We've seen um the sec claim that 13 assets on coin base were in fact securities. Um which is very interesting considering that the chair of the SEC, Gary Gz couldn't tell anyone under oath if Ethereum, the second largest Cryptocurrency by market cap was a security or not. So, the SEC is alleging a lot of different things. And me personally, this doesn't come as a surprise. It doesn't come as a shock. Richard does have a very loud and flamboyant um persona. And, um, me personally, I'm waiting to see what happens with the evidence and what, what, what facts that the court is going to be or that the SEC is going to be able to provide against Richard and the things that they're saying that he did, um I'm a big supporter of the crypto industry in general. Anybody that the SEC goes after because at this point, I just feel like the SEC has a very terrible track record and going after people unjustly or entities unjustly. However, that doesn't mean that I'm saying that he's innocent or what he did was right. I'm simply waiting for more evidence to come out and then make a judgment based off of that when it does happen. But again, the SEC does not have a great track record when it comes to crypto assets or crypto folks. Fair enough, I think with this story in particular though, we've all been waiting for quite a while and when you alluded to it, right? You're not surprised because I think a lot of people looked at this and thought like at some point, this was going to happen. Uh The hex community rich large, which is the name for this hex community. People who bought into the hex token. They've been purchasing these tokens in different iterations for years. It's been basically a profiteering fest for Richard Hart who has used it to buy uh one of the world's largest diamonds. He's well known for buying uh the entire Gucci store out in New York whenever he visits uh tons of Lambo. Like this is the man who saw the potential with issuing his own token and ran with it back in the day. Richard Hart actually used to be a Bitcoin maximalist. Someone who thought that only Bitcoin uh was the way forward. But then he also realized that he could become fabulously wealthy if he issued his own token and kept a gambit up for years. Part of this is funny because if you look at this and you look at his online persona, it is hilarious. Like he's a jokester. He, he has loud um him walking out of the Gucci store carrying all these bags. It's comical. But then you also look at the people who purchase hecs over the last four plus years and the fact that the SEC did not do anything to stop this, even though it was obviously a scam from the beginning, that's the heartbreaking part. There's a lot of people who put tons of money into hecs just to lose everything. Uh There is a documentary that's supposed to air pretty soon about this whole ordeal, uh, that we look forward to seeing and it does detail how there's a lot of people who, you know, they put their life savings into the Hecs and now they're looking at it as huge losses. Um, comparatively $1 billion funneled into this token versus what happened with Luna. The heck. Story starts to dwarf anything that we saw last Cycle. Zach. Yeah, definitely par for the course for Gary Gusler Sec and another one for the enforcement action, history books. We'll see what transpires. Yeah, there's plenty for them to tackle.