The US Securities and Exchange Commission (SEC) has filed a lawsuit against HEX, PulseChain and PulseX founder Richard Hart for alleged sales of unregistered securities.
According to the regulator, the entrepreneur has raised more than $1 billion selling tokens from three projects (HEX, PLS and PSLX) since 2019. The lawsuit notes he advertised them "as a pathway to grandiose wealth for investors."
According to the SEC:
"Hart urged investors to buy crypto asset securities in offerings that he failed to register. He did not disclose that he used millions of dollars of PulseChain investor funds to buy luxury goods for himself."
The complaint, filed in the Eastern District of New York, alleges violations of securities laws. In addition, the Commission has also charged Hart with fraud, as he allegedly misappropriated money from PulseChain investors.
The regulator has added:
"Instead of using these investor funds to develop and market the PulseChain network [...], Heart and PulseChain used at least $12.1 million of investor funds for Heart’s personal luxury purchases."