Richard Heart, the founder of the cryptocurrency HEX, has emerged from the shadows to mount a legal defense against allegations from the US Securities and Exchange Commission (SEC).
Heart is represented by a team of high-profile attorneys who have pushed back forcefully against claims that he violated federal securities laws through the development of HEX, PulseChain, and PulseX.
In a letter dated January 9, 2024, addressed to Judge Carol Bagley Amon of the United States District Court for the Eastern District of New York, Heart’s lawyers outlined their intention to request a pre-motion conference.
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This preemptive move comes in response to a complaint filed by the SEC last month. The complaint accuses Heart of illegally selling “crypto asset securities” and misappropriating funds raised through their sale.
Heart’s legal team staunchly denies these allegations, resting their argument on the innovative nature of blockchain technology. They position Heart as deeply committed to unlocking blockchain’s potential societal benefits. Furthermore, they point to his enduring fascination with the technology since being introduced to Bitcoin in 2011.
HEX token surges by 40% following the fightback
The defense letter argues that the software programs in question—HEX, PulseChain, and PulseX—operate on a decentralized network of computers worldwide, independent of any business or corporate oversight. They claim the SEC overlooks this crucial decentralization aspect in its complaint.
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Beyond the legal battle, cryptocurrency markets have reacted positively to Heart’s assertive stance. Following the news of Richard Heart’s intention to contest the SEC’s charges vigorously, the prices of HEX and its sister tokens PulseChain (PLS) and PulseX (PLSX) have all seen double-digit gains. HEX is trading at $0.008066 with a 40% gain over the last 24 hours. PLS is also up by almost 30% at press time.