No Dismissal of Hex Founder Richard Heart’s Case

[TomPluz]

The SEC argues against Heart’s dismissal motion, asserting authority over his $1 billion fraud case involving misused funds and false claims.

The SEC contended that Heart’s motion to dismiss fails to address the well-supported allegations in the complaint and ignores relevant legal standards.

Heart had previously argued in his dismissal motion that the regulator lacks authority because he resided abroad and had no presence in the US during the relevant period.

According to the official SEC document, from December 2019 to November 2020, Heart marketed Hex as a crypto asset security, branding it as a “blockchain certificate of deposit” with the promise of consistently increasing token holdings through staking.

Heart’s claims, which included promises of high returns and the assertion that Hex was the “highest appreciating asset ever,” attracted significant investment.

In fact, investors were said to have poured in $678 million worth of ETH, and the SEC highlighted that despite these grand promises, Hex’s value plummeted by approximately 98.4% from its all-time high as of July 2023.

Get more details here.

I once was a holder of HEX and I eventually sold them at a loss as the price failed to soar high as promised by its founder...anyway it was just one of the many bad experiences I got into in the world of cryptocurrency. Richard Heart is one of the many controversial figures in this industry as he displayed a rich and famous lifestyle maybe financed by his cryptocurrency involvement. Now that the SEC has current case on him in the court, Richard is fighting back and seeking available remedies that he can use to minimize the possible risk that can come to him legally.

Do you sympathize with Richard or do you think he deserves this legal drama?

[MrSpasybo]

I once was a holder of HEX and I eventually sold them at a loss as the price failed to soar high as promised by its founder...anyway it was just one of the many bad experiences I got into in the world of cryptocurrency. Richard Heart is one of the many controversial figures in this industry as he displayed a rich and famous lifestyle maybe financed by his cryptocurrency involvement. Now that the SEC has current case on him in the court, Richard is fighting back and seeking available remedies that he can use to minimize the possible risk that can come to him legally.

Do you sympathize with Richard or do you think he deserves this legal drama?

I'm not a lawyer, so I can't fully understand all the evidence, accusations, and defenses. I'll wait for the judge's decision and analysis from legal experts in the crypto market. I just see that the price drop of HEX is completely normal in the crypto market, especially since HEX price increased extremely strongly during the bullrun 2021 and brought profits to many investors.

I'm sorry for your losses on your HEX investment. I hope you've gained more experience to profit in this bullrun. I myself also once believed in big projects backed by celebrities in the 2017 ICO and suffered heavy losses. Luckily, I was able to recover my losses thanks to the impressive growth of the crypto market in the bullrun 2021. As long as the market exists and we still have capital, we still have a chance!

[yhiaali3]

Yes I remember Hex seemed like a good option at the time and was growing, I bought some for a while and then sold it.

I honestly don't know if Richard Heart is really guilty or not but a lot of investors who lost money due to their trust in him and the big drop in the coin must be very angry, and some of them may have filed a complaint with the SEC against Hart for fraud.

They can't be blamed because they lost a lot of money, and I expect it would be appropriate to prosecute Heart and fine him either for fraud or negligence towards the project that caused the loss of users.

[Zed0X]

I haven't heard about HEX for a while. With the way they were aggressively advertised before, I just knew that I had to stay away. I thought there must be something wrong or defective with that they're offering that's why they're pushing it hard. I was confident that a lot of investors will be disappointed. Their money is probably used to pay all those lawyer fees.

[Z-tight]

Do you sympathize with Richard or do you think he deserves this legal drama?

I didn't buy any hex token, i don't even know too much about it. I don't really sympathize with Richard and i do not know if his intentions were to scam people from the beginning or if the project was just surely going to fail. People lost a lot of money and reports have it that he used investors money to fund his lifestyle, now if that is true, then he has to pay for his crimes.

[Faisal2202]

Do you sympathize with Richard or do you think he deserves this legal drama?

Let's answer your question with the same thing I did. I have made my hopes on making a profit from NOT Coin ( which was an airdrop-based reward given to me). The founder made a statement on the channel that he will sell his 6.7 million dollars worth of not when they become 670 million dollars means that's 100x. I take it as a commitment that maybe in the future this coin might pump that much although the hype at that time was so high.

So I sold half and kept half. Total was $140 dollars so not a big amount of money on stake here. I have half invested in NOT now, and they went 4x like from 70 to 240 in a few days but I did not book profit as I was planning on holding them for the long term. Now they are worth around $100. Which is also not bad but I could have booked that 140 dollars.

The point is, should I blame the founder now, As he did not ask me to invest on his behalf, it's just me. I trusted him, so to some extent, I am also responsible and knew that in this investment a loss is present. So when you are investing, you must have got this thought that you might be taking a big risk. So now blaming the founder for loss is not right, although if he tried to phish investors with his sweet teeth then that's wrong. Because we should be presented with the right facts so we can make the right decision.

[NotATether]

Does anyone else remember when Richard Heart and the HEX website were saying pre-launch on late 2019 that "The price can only go up" because of whatever tokenomics they were using?

Well, that turned out to be a lie.

Way before any lawsuits about HEX started (which is now classified as a security), it peaked sometime in 2021, and went crashing down after that.

[MrSpasybo]

Does anyone else remember when Richard Heart and the HEX website were saying pre-launch on late 2019 that "The price can only go up" because of whatever tokenomics they were using?

Well, that turned out to be a lie.

Way before any lawsuits about HEX started (which is now classified as a security), it peaked sometime in 2021, and went crashing down after that.

We can find hundreds of similar price charts in this market, regardless of whether they are top coins as SOL, AVAX, NEAR, FTM or memecoins as DOGE, SHIB, FLOKI. We always know that no asset can continuously increase in price, even BTC has experienced 80% price drops during crypto winters.

Statements about a token potential for price increases are often just for fun and not investment promises. Project owners can say whatever they want, maybe because they love their solution too much or they just want more F0 investors to buy their tokens. In the case of the HEX Founder, I hope he is ready to answer questions in court.

[ZAINmalik75]

Branding something on a larger scale can earn you investors' trust and money, but you must be worthy and capable enough to meet their expectations. I don't know much about Heart's history, but if he made such big promises to his investors, then there is no bigger fool than him. He was either not smart enough to escape after committing this scam or was shocked by the results, which were a total failure.

As investors, we shouldn't take heavily advertised projects as facts; instead, we must do our own research. What role does tokenomics play in the bullishness of the token, and why was Heart so confident in the project when he shouldn't have been? There's always a downside to everything.

[robelneo]

Do you sympathize with Richard or do you think he deserves this legal drama?

The SEC did the right thing; they should nail him down and get him in prison to rot, so he should become an example who will deceive people from investing in their scam token, This guy I remember is very boastful and very arrogant when he promotes his scam token Hex calling it better than Bitcoin, when he is the one collecting the huge money while investors are losing their money.

[philipma1957]

Branding something on a larger scale can earn you investors' trust and money, but you must be worthy and capable enough to meet their expectations. I don't know much about Heart's history, but if he made such big promises to his investors, then there is no bigger fool than him. He was either not smart enough to escape after committing this scam or was shocked by the results, which were a total failure.

As investors, we shouldn't take heavily advertised projects as facts; instead, we must do our own research. What role does tokenomics play in the bullishness of the token, and why was Heart so confident in the project when he shouldn't have been? There's always a downside to everything.

Well if he cashed out say 30-40 million and has it stashed away 2 or 3 or 4 years in prison is a decent deal for him. Shame that people like him are not publicly tortured to death.

Although I suspect people would still give it a shot.

[ZAINmalik75]

Well if he cashed out say 30-40 million and has it stashed away 2 or 3 or 4 years in prison is a decent deal for him. Shame that people like him are not publicly tortured to death.

Although I suspect people would still give it a shot.

Publicly tortured death are you serious? I think that would be too much for him at last it's not his fault only. People invested in HEX should have given some common sense to the promises that Heart made. I found no historical achievements that HEX founder Heart has made, so why do people trust him?

Was he part of something big like a trust platform? As far as I know, he was not. Death is not the solution instead, prison can be enough but not for 2 or 3 or 4 years. People will give such things a shot again and again.