Richard Schueler, also known as Richard Heart, defrauded investors out of millions through his Hex cryptoasset, the SEC alleged.
Schueler used proceeds from the $1 billion offer-and-sale to purchase high-end watches, real estate, and jewels.SEC Chairman Gary Gensler participates in a meeting of the Financial Stability Oversight Council at the U.S. Treasury on July 28, 2023 in Washington, DC.The Securities and Exchange Commission on Monday filed charges against a U.S.
The offerings were made through Hex tokens, which were marketed as an Ethereum-based "Certificate of Deposit." But the SEC alleges that the 38% annual return that Schueler touted was nothing more than cover for an elaborate scheme.
Schueler misappropriated at least $12 million of investor funds, the SEC alleged, to purchase a 555-carat, high-end vehicles, and luxury watches. A $550,000 Rolex Daytona, an $800,000 Rolex GMT Master II and another unspecified $1.38 million Rolex watch were among his watch purchases, the SEC said. In March, Schueler began to pare back his social media presence, deactivating his Instagram profile to "show more humility and respectfulness."
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