The US Securities and Exchange Commission (SEC) said it has begun legal proceedings against HEX founder Richard Schuler, who is based in Finland.
In a statement filed in New York District Court, the SEC explained that the agency previously could not serve the subpoena personally on Richard Schueler, known as Richard Heart. The department knew that the man lived in Helsinki, but carefully concealed his whereabouts. Still, that didn't stop Hart from staying active online.
The SEC said that since September 13, it has made several unsuccessful attempts to contact the offender through calls, text messages and letters. Therefore, the regulator used an alternative option - a substitute for personal service of a court document.
In July, the SEC sued the founder of HEX, alleging that he made more than $1 billion from the sale of HEX crypto assets PulseChain (PLS) and PulseX (PSLX). The regulator called them unregistered securities. Hart defrauded investors in the United States and abroad, embezzling at least $12 million and using it to buy diamonds, luxury watches, luxury cars and other luxury items.
Some cryptanalysts, including DonAlt, agree with the American regulator. DonAlt is confident that HEX tokens were deliberately intended for the personal enrichment of the founder of the crypto platform.
