Hex, a cryptocurrency exchange platform, lost a whopping $500 million in market capitalization after the US Securities and Exchange Commission (SEC) filed a lawsuit against the company. The SEC alleged that the platform was operating as an unregistered security and that its founder, Richard Heart, was using false claims and misleading information to promote the Hex cryptocurrency. Investors were prompted to sell their holdings, causing Hex’s market cap to plummet. The cryptocurrency community is once again reminded of the importance of conducting due diligence before investing in any crypto project.