The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Richard Heart, alleging that his HEX token is an unregistered security. As a result, Uniswap, one of the leading decentralized exchanges (DEX), has delisted HEX from its front-end user interface.
The SEC Sues Richard Heart’s HEX and Pulse Projects
The SEC’s lawsuit against Richard Heart, also known as Richard Schueler, accuses him of raising over $1 billion since 2019 through three crypto projects: HEX, PulseChain (PLS), and PulseX (PLSX). The complaint, filed in the Eastern District of New York, identifies Uniswap as a trading venue for Heart’s tokens. It alleges that Heart launched PulseX as a Uniswap fork and conducted transactions of unregistered securities on the DEX.
Apart from the allegations of unregistered securities, the lawsuit claims that Heart diverted investors’ funds towards funding his extravagant personal lifestyle, potentially defrauding investors in the process. This lawsuit adds to the SEC’s growing list of cases involving crypto founders, including notable figures like Alex Mashinsky, Changpeng Zhao, and Do Kwon.
HEX Delisted from Uniswap Front-End Interface
Following the SEC’s lawsuit, Uniswap has taken action to delist HEX from its front-end user interface. However, this doesn’t mean that traders are unable to trade the token on the DEX. Instead, HEX can still be swapped by directly calling up the token’s smart contract. The delisting from the front-end interface serves as a warning to traders and indicates that the token may carry legal considerations or have involvement in scams or trademark violations.
Uniswap maintains a list of unsupported tokens, which includes those that have been delisted due to legal concerns. HEX’s addition to this list signifies the potential risks associated with the token. Traders are advised to exercise caution and conduct thorough research before engaging in any transactions involving HEX or other unsupported tokens.
Uniswap’s Response to Delisting HEX
Uniswap’s decision to delist HEX from its front-end interface demonstrates the platform’s commitment to regulatory compliance and protecting its users from potential risks. By taking this action, Uniswap aims to mitigate the likelihood of traders unknowingly engaging in transactions involving unregistered securities or other fraudulent activities.
Delisting unsupported tokens is a necessary step for Uniswap to maintain its reputation as a reliable and trustworthy DEX. By removing tokens that do not meet certain criteria, Uniswap can ensure a safer trading environment for its users and minimize the potential for fraudulent or scam-related activities.