The U.S. Securities and Exchange Commission (SEC) plans to indict Pulsechain and Hex founder Richard Hart for securities fraud just days before the vanity movie project premieres. best bet.
Given the multiple serious charges against him and the subsequent felony potential (if the DOJ follows SEC precedent), Hart seems likely to recognize that the higher he climbs, the harder it gets. is.
Richard Hart, one of the most instantly recognizable figures in the crypto world, faces a series of indictments from the SEC following a July 31 court filing.
The allegations against the cryptocurrency founder and influencer are terrible.of SEC claims Hart diverted at least $12 million in user funds to purchase an array of luxury items, including designer clothing, luxury watches, sports cars and a 555-carat black diamond known as “Enigma.”
The SEC lawsuit alleges that Heart raised $1 billion through the sale of Hex, PulseChain and PulseX. According to the SEC, all of these cryptocurrencies are securities.
The lawsuit further alleges that about 94-97% of deposits to Hex were actually recycled transactions. According to the SEC, Hart and his insiders used a series of intermediary wallets and exchanges to disguise organic demand, using the same funds over and over again to inflate prices and sell ever-larger amounts. Hex is said to have accumulated.
Hart’s prosecution poses a crisis of conscience for the crypto community, who are not fans of the SEC or fraudulent projects. On the one hand, the fact that one of the parties loses should give most observers a delicious schadenfreude.
On the other hand, this joy fades when you know that your opponent has to win in order to do so.
The timing of the SEC filing was particularly unfortunate for Hart since the personal vanity documentary. best bet It will premiere in Miami on August 3rd.
This documentary trailer opens with a particularly interesting statement from the founder.
“This is a once-in-a-lifetime opportunity,” Hart says, staring into the camera. “Yes, scammers all over the world say something similar, but in this case you will actually regret it.”
Hart’s predicted regret may now be closer than he thought.
“I am in crypto for glory. I want to have the best crypto that has ever existed,” Hart says in another section of the trailer.
On August 3, in the twilight of movie theaters, these statements and many others will take on new meaning in the context of the SEC’s legal action.
Adding to the sarcasm, documentary makers continue to tout the film as “the cryptocurrency tiger king filling theaters nationwide.” – What happened to Joe Exotic anyway?
Hex ‘Anti-Christ’ nourishes the mind
The severity of Hart’s case is such that outspoken cryptocurrency analyst and self-proclaimed Hex “Antichrist” Eric Wall sympathizes with his former nemesis.
In the aftermath of the SEC filing, Mr. Wall, who initially took a knife to Hart, expressed regret and deleted a series of Twitter posts about the issue.
Mr. Wall explaining his decision Said,”It has been deleted [Twitter] Thread about Richard – I just heard he could be sentenced to life in prison under US law. ”
Wall’s own change of heart came after Martin Shkreli, a hedge fund manager (and financial crime expert himself), reviewed the case.
“I hope no one goes to jail, especially for financial crimes, but the world doesn’t do that,” he said. Shkreli. “unimaginable [Department of Justice] Please do not copy and paste this into your indictment. he’s looking at his life ”
The exchange prompted Wall to reconsider whether Hart’s prosecution would be the happy Victory Lap he had originally envisioned.
“This hit me with an unexpected emotional shock,” said Wall, realizing just how serious Hart’s situation really was.
The SEC alleges that Richard Hart used at least $12 million from investor funds to purchase luxury goods. smile. pic.twitter.com/IfMOBmTM3l
— Tiffany Fong (@TiffanyFong_) July 31, 2023
tragedy in progress
While Wall feels sympathy for the fallen frenemies, others in the crypto community are less tolerant.
Hart may have his followers and fans, but he’s not without his detractors. I sensed a moment when Hart’s critics were lining up to criticize Hart. theft, scam, even worse. But while Hart’s words of “hate” may sting, the real hurt lies with regulators.For years, Hart pushed the SEC to take actionIt’s his bombastic publicity zeal, exorbitant personal spending, and clown-like caricatures of his ludicrous attention-grabbing figures.
What is the state of cryptocurrencies now that legal action has been taken? clown The prince looks incredibly unstable. It’s a cautionary tale already told.overconfidence The influencer has been held up too high, too close to the SEC’s squinting gaze, and now his day-faced designer wings are melting.