The Securities and Exchange Commission declared HEX and two other crypto projects led by Richard Heart as unregistered securities in a lawsuit.
Heart allegedly raised $1 billion from HEX, PulseChain, and PulseX since 2019, per the SEC’s claims in an Eastern District of New York court.
The token is now delisted on Uniswap’s front-end interface, though the token is still tradeable on crypto’s largest decentralized exchange.
Richard Heart’s HEX token is now delisted on leading decentralized exchange HEX days after the U.S. Securities and Exchange Commission (SEC) alleged that the token is an unregistered security in a lawsuit filed on July 31.
The move does not mean that Uniswap users cannot trade the token. Rather, the crypto is removed from Uniswap’s front-end user interface and appears with a warning note. Traders can still swap HEX on the DEX by directly calling up the token’s smart contract.
Uniswap added HEX to its list of unsupported tokens found here. Cryptos in this list include coins delisted based on legal consideration and tokens that have proven to be scams or violate trademarks.
SEC Sues Richard Heart’s HEX And Pulse Projects
On July 31, the SEC sued Richard Heart whose government name is Richard Schueler. Heart was accused of raising at least $1 billion since 2019 from three crypto projects – HEX, PulseChain (PLS), and PulseX (PLSX).
The complaint filed at a District Court in Eastern New York also named Uniswap as a trading venue for Heart’s tokens. According to the lawsuit, PulseX was launched as a Uniswap fork, and transactions of unregistered securities issued by Heart occurred on the DEX.
Venue is proper in this District because many of the crypto asset transactions described herein took place on Uniswap, a so-called decentralized crypto asset trading platform whose developers are headquartered in Brooklyn.
Included in the lawsuit are claims that Heart funneled cash invested in his crypto offerings toward funding a lavish personal lifestyle, thus defrauding investors of their money. The SEC has several cases against crypto founders including Alex Mashinsky, Changpeng Zhao, and Do Kwon.