The post SEC Denies Hex’s Richard Heart’s Plea to Dismiss Case appeared on BitcoinEthereumNews.com.

The US SEC has denied HEX’s founder Richard Heart’s attempts to dismiss the case filed against him and said that they have the jurisdiction to pursue its lawsuit. SEC marred Heart’s efforts to dismiss the lawsuit against him in a filing made to the U.S. District Court for the Eastern District of New York which only became public on Thursday.   SEC’s filings read, “In his Motion asking the Court to dismiss all the claims against him, Heart disregards the well-pleaded allegations of the Complaint and the applicable law”. The next hearing is scheduled for Oct. 24. The SEC sued HEX and PulseChain founder Richard Heart(aka Richard Schueler), in 2023. Heart was accused of raising over $1 billion in unregistered securities offerings and using the sum to buy luxury cars, designer clothes and a rare black diamond, ‘The Enigma’ valued over $4 million.  In the filing, the SEC said that HEX’s staking mechanism allows investors to contribute HEX tokens that are locked up to get more HEX tokens at a later date.Heart said that investors could receive a return of 38% for staking their HEX tokens, but SEC maintained that much of the demand for HEX was ‘artificial’, with “94%-97% of the ETH deposited” into that wallet “recycled through the so-called crypto asset trading platform.” Heart’s legal team tried to dismiss the SEC’s lawsuit, arguing that no fraud was committed because he didn’t promise investors anything.  “The SEC’s fraud claims fail because the Complaint alleges no deceptive conduct,” they said. “The SEC asserts that ‘investors invested more than $354 million of crypto assets in PulseChain’ and that Mr. Heart allegedly used about $8.9 million of PulseChain assets to fund purchases of luxury goods. But the Complaint is remarkably silent as to what Mr. Heart stated would be done with the assets,…

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Filed under: News - @ August 23, 2024 1:16 am