Richard Heart, a 43-year-old entrepreneur and U.S. citizen residing in Helsinki, Finland, is facing charges from the U.S. Securities and Exchange Commission (SEC). Known also as Richard Schueler, Heart is accused of unlawfully raising over $1 billion via three unregistered cryptocurrency offerings. The SEC claims that Heart defrauded investors, diverting $12.1 million to fund extravagant purchases, including the world’s largest black diamond, “The Enigma.”
Heart used platforms like YouTube to promote his Hex token, PulseX asset trading platform, and PulseChain asset network. He promised potential investors that Hex could deliver 38% annual returns and was “built to be the highest appreciating asset that has ever existed in the history of man.” However, by June 30, Hex’s price had dropped over 98% from its peak, making PulseChain and PulseX offerings nearly valueless.
While Heart did include disclaimers stating his offerings were not securities, these were often delivered in a “tongue-in-cheek” style. The SEC contends that Heart knew these claims were false. He is also accused of using PulseChain investor funds to buy luxury items, including McLaren and Ferrari sports cars, four Rolex watches, and “The Enigma,” a 555-carat black diamond purchased for $4.28 million at a Sotheby’s auction in February 2022.
Despite these allegations, Hex’s website continues to assert that the token is designed to replace credit card and payment companies, certificates of deposit, and gold as a long-term store of value. The website also insists that “Hex is not a scam.”