SEC Faces Challenges Serving Lawsuit to Hex and PulseChain Founder Richard Heart
The United States Securities and Exchange Commission (SEC) is facing obstacles in serving a lawsuit against Richard Schueler, also known as Richard Heart, the founder of Pulsechain, PulseX, and the controversial project Hex.
The SEC filed a lawsuit on July 31st accusing Heart of selling unregistered securities and defrauding investors. The complaint focused on the fundraising activities that raised over $1 billion for these projects. The SEC alleged that Heart misappropriated funds for personal purchases instead of developing the protocols.
The lawsuit also targeted Heart’s control of the project, his statements regarding potential increases in value, and the staking feature designed to encourage token holders to lock up their tokens in exchange for more tokens.
Difficulties in Serving the Lawsuit
The SEC has encountered difficulties in serving the lawsuit against Richard Heart. Despite requesting the Ministry of Justice of Finland to serve the lawsuit in Helsinki, there has been no confirmation of successful service.
A teleconference initially planned for November 28 has been rescheduled to January 30, 2024. The SEC argues for jurisdiction in the Eastern District based on the assertion that many of the crypto asset transactions related to the case occurred on Uniswap, a decentralized crypto asset trading platform with developers headquartered in Brooklyn.
If service has not been achieved by December 15, 2023, the SEC plans to seek alternative service according to the Federal Rules of Civil Procedure.
Hot Take: SEC’s Challenges in Serving Lawsuit to Richard Heart
The United States Securities and Exchange Commission (SEC) is facing hurdles in serving a lawsuit against Richard Schueler, also known as Richard Heart. The SEC accuses Heart of selling unregistered securities and defrauding investors through the projects Hex, PulseChain, and PulseX. However, serving the lawsuit has proven difficult for the SEC, as there has been no confirmation of successful service despite requesting assistance from the Ministry of Justice of Finland.
The SEC argues for jurisdiction in the Eastern District based on the assertion that many relevant transactions occurred on Uniswap, a decentralized crypto asset trading platform with developers headquartered in Brooklyn. If alternative service is required, the SEC plans to seek it in accordance with the Federal Rules of Civil Procedure.
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