The Securities and Exchange Commission (SEC) has leveled serious charges against Richard Schueler, also known as Richard Heart, a U.S. citizen accused of raising over $1 billion through the unregistered sale of crypto securities. The SEC alleges that Schueler operated three crypto-asset offerings – Hex, PulseChain, and PulseX – while promoting them as a pathway to immense wealth.
Under the guise of offering Ethereum-based “Certificates of Deposit” with a tempting 38% annual return, the SEC claims that Schueler was orchestrating an elaborate scheme. He allegedly engaged in wash trading, artificially inflating trading volumes to create a false sense of demand for Hex tokens.
Today we charged Richard Heart (aka Richard Schueler) and three unincorporated entities that he controls, Hex, PulseChain, and PulseX, with conducting unregistered offerings of crypto asset securities that raised more than $1 billion in crypto assets from investors.
— U.S. Securities and Exchange Commission (@SECGov) July 31, 2023
The extent of Schueler’s alleged misconduct is shocking, as the SEC accuses him of misappropriating at least $12 million from investors to indulge in a lavish lifestyle. Notable luxury purchases include the largest black diamond in the world, valued at millions, as well as high-end vehicles and several extravagant Rolex watches, including a $550,000 Rolex Daytona and an $800,000 Rolex GMT Master II.
Facing three charges of securities fraud in civil court, Schueler’s case serves as a stark reminder of the potential risks in the crypto world. The SEC’s investigation highlights the importance of regulatory oversight to protect investors from deceptive schemes and extravagant indulgences.
