The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Richard Heart, the founder of a cryptocurrency project known as Hex.
The lawsuit alleges that Heart and his associated entities committed fraud by making “materially false and misleading statements” when promoting the project.
The SEC also alleges that Heart and his associated entities violated provisions of the federal securities laws related to unregistered offering of securities.
According to the lawsuit, Heart and his associates have been selling offerings of Hex tokens through various online platforms, claiming that investors would be able to earn returns on their investment.
The complaint alleges that these statements were false and misleading because they failed to disclose the risks associated with investing in the tokens.
The SEC seeks disgorgement of ill-gotten gains, and civil penalties in addition to a permanent injunction prohibiting Heart from further violations of the securities laws.
It appears that the SEC is becoming increasingly serious in its efforts to crack down on alleged violations of its regulations pertaining to digital assets. This case serves as an important reminder that those who engage in certain activities related to cryptocurrency could be subject to legal action.
