"Every day there is the SEC that wants to sue people, can't you just chill for a while."
The Securities and Exchange Commission (SEC) once again acted aggressively by filing a lawsuit against Richard Schueler or better known as Richard Heart, the founder of the HEX protocol and PulseChain for the offense of selling unregistered securities.
It is reported that Heart is allegedly raising as much as $1 billion for the sale of tokens linked to the PulseChain, PulseX and HEX protocols which have long been considered unregistered digital asset securities.
In addition to accusing Heart of promoting the investment to generate wealth, the SEC also accused him of offering a staking product that was able to return up to 38% to investors but that action was completely unsafe.
This is because Heart solicited investors to buy crypto-asset securities in its unregistered offering and then defrauded them by spending a large portion of the investors' digital assets on luxury items, commented Erec Werner, Director of the Fort Worth Regional Office.
But it should be noted that the SEC charging Heart does not come as a surprise to crypto investors as they have become accustomed to enforcement actions by regulators.
It's true that HEX and PulseChain are somewhat less popular than other Web3 projects that have been sued by the SEC, but the impact of the lawsuit is likely to continue to be felt across the board.
As of this writing, HEX price has plunged by 23.63% to $0.006 in the last 24 hours with a market cap of $1 billion while PulseChain (PLS) has slipped to $0.00006 from $0.0001.
