The Securities and Exchange Commission (SEC) has taken legal action against Richard Schueler, also known as Richard Heart, a U.S. citizen residing in Finland, for allegedly orchestrating a fraudulent scheme involving the unregistered offer and sale of crypto securities. Schueler is accused of raising more than $1 billion through three crypto-asset offerings: Hex, PulseChain, and PulseX. The regulator alleges that he enticed investors with promises of grandiose wealth, only to misappropriate millions for personal gain, including purchasing the world’s largest black diamond and luxury goods. The charges include securities fraud and deceptive practices, exposing the dark side of the crypto world.

Hex Tokens – A Deceptive “Certificate of Deposit”

Hex Token Is A Part Of The Sec Accusation
Hex token

Schueler’s scheme primarily revolved around the promotion of Hex tokens, which he marketed as Ethereum-based “Certificates of Deposit” (CDs). He lured investors by promising an eye-catching 38% annual return, positioning the investment as a pathway to immense riches. However, the regulator contends that this promise was a mere facade to conceal an elaborate fraud.

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The allegations suggest that Schueler engaged in extensive wash trading on his platforms, artificially inflating the trading volume and demand for Hex tokens. This fraudulent tactic created a false impression of genuine interest in the tokens, enticing more investors to participate in the offerings. They assert that these activities were meant to enrich Schueler and sustain his high-status lifestyle, rather than genuinely benefiting the investors.

SEC Accuses Misappropriation of Funds for Luxury Goods

 Richard Schueler Aka Richard Heart, The Founder Of Hex, Pulsechain And Pulsex
Richard Schueler aka Richard Heart, the founder of Hex, PulseChain and PulseX

According to the U.S. Securities and Exchange Commission, Schueler surreptitiously embezzled a substantial amount of investor funds, diverting at least $12 million to finance an opulent lifestyle. Among his lavish purchases were a staggering 555-carat black diamond, high-end vehicles, and luxury watches. They highlighted notable watch purchases, including a $550,000 Rolex Daytona, an $800,000 Rolex GMT Master II, and another unspecified Rolex watch worth $1.38 million.

The allegations depict a stark contrast between Schueler’s extravagant personal spending and the promised benefits he pledged to his investors. Instead of using the funds to develop the projects and protocols he pitched, Schueler allegedly misused them for personal gain, leaving investors deceived and defrauded.


The SEC’s lawsuit against Richard Schueler, also known as Richard Heart, has shed light on the dark side of the crypto world. The allegations of unregistered securities sales, securities fraud, and misappropriation of funds have brought scrutiny to crypto-asset offerings and underscore the importance of investor protection and regulatory oversight in this rapidly evolving space.

As the case unfolds, it serves as a warning to both investors and crypto entrepreneurs about the potential risks and consequences associated with fraudulent activities in the cryptocurrency market. Their actions reinforce the need for increased diligence and caution while navigating the crypto landscape and underline the importance of accountability to ensure the long-term viability and legitimacy of digital assets.

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