Richard Heart seeks distance from crypto with other celebs facing legal action
Richard Heart, the founder of the crypto projects HEX, PulseChain, and PulseX, has recently removed projects from his bio and has announced on Twitter that he is deleting his Instagram account.
Richard Heart puts spotlight on regulation
The move by Heart has led to speculation that he may be taking steps to protect himself from potential regulatory action by the Securities and Exchange Commission (SEC). It is unclear whether Heart’s activities are related to any specific SEC investigation or enforcement action.
Still, his decision to distance himself from his crypto projects and social media accounts could suggest that he is concerned about potential legal consequences.
The SEC has recently been cracking down on fraudulent and non-compliant crypto projects and has taken action against several high-profile individuals and companies. Therefore, Heart’s decision to distance himself from his projects and social media presence may be a preemptive measure to avoid any potential regulatory scrutiny.
HEX, PulseChain, and PulseX are all projects that Heart has been promoting heavily in recent years. HEX, in particular, has been a controversial project, with many in the crypto community accusing it of being a pyramid scheme.
Despite the controversy, Heart has continued to promote HEX and his other projects. However, his recent actions have raised questions about what is happening behind the scenes. Based on records from the Wayback Machine, he made the modifications by March 4.
Previously, the bio description contained a location tag referencing websites associated with HEX, namely Hex.com, Pulsechain.com, and PulseX. Additionally, Richard boasted about his charitable contribution of $27 million and his ownership of high-end items such as diamonds, a Ferrari, and Rolex watches.
A previous version of the founder’s bio referred to him as a “Multi-billion $” founder of various projects, including HEX.
The bio also boasted about HEX’s price increasing by 10,000 times since its launch three years ago. Interestingly, Richard’s current Twitter bio claims that he doesn’t read messages, emails, newspapers, magazines, or most forms of communication, nor does he listen to the radio or anything else.
However, he has not stopped tweeting about HEX. Despite this, there has been speculation about why Richard’s primary Twitter bio no longer mentions HEX or related projects.
SEC is going hard after celebs
The SEC’s action against Kardashian is part of its broader effort to police the promotion of cryptocurrencies and other digital assets. Given the surge in interest in digital assets and the potential for fraudulent or misleading promotions, the agency has been particularly active in this area.
The SEC has emphasized that celebrities and social media influencers must comply with securities laws when promoting digital assets.
On Oct. 3, 2022, the SEC said it is keeping up with popular culture by announcing settled charges against Kim Kardashian for breaching Section 17(b) through her promotion of EMAX.
The Securities and Exchange Commission (SEC) has filed charges against Kardashian for allegedly violating disclosure rules by not revealing that she received $250,000 in exchange for promoting EthereumMax’s EMAX cryptocurrency.
The agency emphasizes the importance of transparency when it comes to social media influencers promoting cryptocurrencies, stating that they must openly acknowledge any biases. While promoting cryptocurrency is allowed, influencers must be upfront about any compensation or incentives they receive.
Kardashian agreed to pay $1.26 million in disgorgement and penalties and a three-year restriction on her promotional activities related to “crypto asset securities” without acknowledging or denying the findings in the order.
According to her lawyer, Kardashian settled with the SEC without admitting or denying the agency’s findings. The company reached the settlement to avoid a prolonged dispute and let her focus on her business ventures.
In 2018, the Securities and Exchange Commission (SEC) announced that professional boxer Floyd Mayweather Jr. and music producer DJ Khaled had settled charges for failing to disclose payments they received for promoting investments in Initial Coin Offerings (ICOs).
Mayweather was found to have not disclosed promotional payments from three ICO issuers, including $100,000 from Centra Tech Inc.
Khaled also failed to disclose $50,000 in income from Centra Tech, which he touted on his social media accounts as a “Game changer.” Mayweather promoted Centra’s ICO to his Twitter followers.
He also predicted that he would make a large amount of money on another ICO in a post on his Instagram account and stated on Twitter, “You can call me Floyd Crypto Mayweather from now on.”
The SEC order found that Mayweather did not disclose that he was paid $200,000 to promote the other two ICOs.
Just recently, the SEC again engaged Tom Brady in a lawsuit after a fan claimed that he invested in the FTX crypto exchange following Brady’s endorsement.
Michael Livieratos, who transferred $30,000 from a rival crypto exchange to FTX, is now among the many individuals involved in a class action lawsuit seeking damages against several celebrities. Livieratos cited Tom Brady, a former New England Patriots player, significantly influencing his decision to invest in FTX.
The lawsuit alleges that Brady and his former partner Gisele Bundchen were “FTX ambassadors” who participated in the company’s $20 million ad campaign in 2021. They filmed commercials encouraging others to join the FTX platform as part of this campaign.
The lawsuit involves several other high-profile names, such as Golden State Warriors player Stephen Curry, NBA legend Shaquille O’Neal, “Shark Tank” investor Kevin O’Leary, and FTX founder Sam Bankman-Fried.