SEC Attempts to Serve Hex Founder
Richard Shueler, the founder of Hex (HEX), is facing a lawsuit filed by the United States Securities and Exchange Commission (SEC). However, the SEC has been unsuccessful in serving him in person. In November, the regulator reported that it had been unable to locate Shueler and serve him with the lawsuit.
Failed Attempts to Serve Shueler
The process server attempted to reach Shueler through various methods such as calls, texts, letters, and in-person visits to his residence in Helsinki, Finland. Unfortunately, all of these attempts were unsuccessful. Despite this, Shueler has maintained an active online presence, making numerous posts related to the crypto sector since the report.
In October, the SEC managed to serve Shueler through a substitute service in accordance with Finnish law and the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents.
Reasons for SEC Lawsuit
The SEC is suing Shueler over alleged illegal sales of “crypto asset securities” including Hex, PulseChain (PLS), and PulseX (PSLX). The agency also accuses him of committing fraud by misappropriating at least $12 million of investors’ funds. Shueler marketed Hex as an investment designed to make people rich and allegedly collected over 2.3 million Ethereum (ETH) through an unregistered offering between December 2019 and November 2020.
“The complaint also alleges that, between at least July 2021 and March 2022, Heart orchestrated two additional unregistered crypto asset security offerings that each raised hundreds of millions of dollars more in crypto assets (โฆ) intended to support the development of a supposed crypto asset network, PulseChain, and a claimed crypto asset trading platform, PulseX.”
Impact on HEX Token
The price of the HEX token has been affected by the SEC lawsuit. Currently, it stands at $0.004775, experiencing a decline of 6.02% in the last 24 hours and a loss of 3.49% over the previous seven days. It has dropped 30.14% in the past month and a significant 82.18% on its yearly chart.
Hot Take: SEC Pursues Hex Founder for Alleged Fraud
The SEC’s ongoing lawsuit against Richard Shueler, also known as Richard Heart, highlights their determination to hold individuals accountable for illegal activities in the crypto space. The allegations of illegal sales and misappropriation of funds demonstrate the importance of regulatory oversight to protect investors from fraudulent schemes.
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