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The HEX-Files: Unraveling the SEC's Billion-Dollar Crypto Fraud Case Against Richard Heart

In a stunning legal action, the U.S. Securities and Exchange Commission (SEC) has accused Richard Heart, also known as Richard Schueler, and his crypto projects HEX, PulseChain, and PulseX of orchestrating unregistered offerings of crypto asset securities. The SEC's complaint reveals a web of deception and manipulation, leading to the alleged amassing of over $1 billion in crypto assets from unsuspecting investors. From promises of immense wealth to extravagant luxury purchases, let's delve into the heart of the SEC's billion-dollar crypto fraud case against Richard Heart.

The Beginnings of the HEX Scheme:

The SEC's complaint traces back to 2018 when Richard Heart began marketing HEX as the first high-yield "blockchain certificate of deposit." Investors were enticed with the allure of exceptional returns, lured by the promise of becoming rich through HEX investments. Between December 2019 and November 2020, Heart and HEX allegedly conducted an unregistered offering, raising a staggering 2.3 million Ethereum (ETH).

The Art of Deception:

Not content with just one fraudulent offering, the SEC claims that Heart orchestrated two more unregistered crypto asset security offerings between July 2021 and March 2022. These additional offerings generated hundreds of millions of dollars in crypto assets. Heart purportedly used these funds to support the development of two projects: PulseChain and PulseX. He offered their native tokens, PLS and PLSX, to unsuspecting investors, further fueling his alleged fraudulent empire.

The "Staking" Facade:

In an attempt to evade securities laws, Heart designed and marketed a "staking" feature for HEX tokens, promising extraordinary returns of up to 38%. This staking feature encouraged investors to "sacrifice" their crypto assets instead of "investing" them in exchange for PLS and PLSX tokens. The SEC sees this as an intentional move to avoid classification as a security offering, while still operating within the realm of securities fraud.

The Heart of the Fraud Exposed:

Attorney Jason Seibert shed light on Heart's cryptocurrency offering during a Twitter Space discussion, revealing that Heart had admitted to potential violations of securities laws from the outset. This provided a strong indication of an unregistered offering, making it difficult for Heart to escape legal scrutiny. The Department of Justice's approach of letting the SEC build a civil case first could pave the way for potential felony charges against Heart in the future.

The HEX Cult:

Former friend turned critic, Eric Wall, attested to Heart's charismatic personality and the cult-like following he cultivated. Wall explained how Heart's significant ownership of HEX tokens led to limited listings on major crypto exchanges, forcing HEX to rely heavily on Uniswap. Wall also described Heart's tactics, including flaunting extravagant jewelry and portraying himself as a self-made millionaire, to create an aura of infallibility and attract devoted followers.

Misappropriation and Lavish Spending:

In addition to the unregistered offerings, Heart and PulseChain are charged with fraud for misappropriating at least $12 million of investors' funds. Shockingly, these funds were allegedly used to indulge in luxury purchases, including sports cars, expensive watches, and a massive 555-carat black diamond known as 'The Enigma.' The SEC's lawsuit reveals the extent of Heart's extravagant lifestyle, which further incriminates him in the eyes of the law.

The Fall of HEX and PulseChain:

The SEC's lawsuit has cast a dark shadow over HEX and PulseChain. Heart's claims of building the highest appreciating asset in history now seem to have been built on lies and deceit. HEX's limited presence on major crypto exchanges, with Uniswap and MetaMask canceling the project, adds to the backlash and outcry from disillusioned investors.


The SEC's billion-dollar crypto fraud case against Richard Heart is a cautionary tale for investors in the cryptocurrency space. It serves as a reminder to exercise due diligence and skepticism when presented with promises of quick riches and extravagant returns. As the legal battle unfolds, the heart of the fraud case exposes a web of deception, misappropriation, and questionable tactics that could have far-reaching consequences for Heart and his crypto ventures.


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