Richard Heart’s HEX token plummets amid more Ponzi allegations, SEC investigation

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Social media influencer Richard Heart’s HEX token project is having a rough time in the trading markets. Its namesake token continues to drop in value as the project faces ongoing allegations that it’s a Ponzi scheme. In late 2022 Heart and HEX became the subject of an SEC investigation. 

In November, the SEC sent subpoenas to various “influencers” and promoters in Heart’s network, requesting any records of information they might have on HEX, Heart himself, and the associated PulseChain and PulseX projects.

GUYS. IT’S HAPPENING. Hexicans influencers are getting subpoenad by the SEC over HEX, PulseChain and PulseX. The HEX information channels are filled with information about how to shred your digital evidence 😂😂😂 pic.twitter.com/PrTYBRT9Wc

— Erica Wall | BIP-420😺 (@ercwl) November 5, 2022

The market value of HEX (an Ethereum ERC-20 token) has plummeted in recent months and is currently worth around US$0.02. The HEX token barely broke above 1 cent between its launch at the end of 2019 and mid-2021, but then surged to an all-time high of $0.51 in September 2021. Despite some brief upward surges, it has been on a downward price trend since.

HEX is known more for its social media network than any actual utility, offering network members/token holders interest returns of between 3.69% and 369%. Rewards are greater for those who “stake” the highest percentage of their HEX holdings for the longest time, with claims the final payout (after 15 years) would be even larger if the HEX token’s market value increases.

“HEX’s utility does not come from cash flow generation, but from community participation (Stakers holding HEX in the network),” fellow blockchain personality Reggie Middleton wrote in a report for his company Veritaseum. Is HEX a Ponzi? “Maybe,” Middleton wrote, adding, “it certainly is arguable that Hex (the token, itself) is not a Ponzi scheme, and simple just a very unwise investment.”

However, Middleton has often referred to Heart/HEX as “Ponzi marketing” and “worthless.” “I don’t intend to own or buy anything related to Hex,” he added.

Despite my many warnings, many succumbed to the @RichardHeartWin Ponzi marketing. Worthless $HEX tokens ware bid all the way up to 49 cents before crashing down to 2 pennies today, amid an @SECGov probe.
Because the tokens have no intrinsic value to begin with, expect no recovery https://t.co/j4cpftXQrq

— Reggie Middleton US11196566, US11895246, JP6813477 (@ReggieMiddleton) December 26, 2022

At the very best, HEX is an empty project drawing most of its so-called value from hype and marketing, while the network and associated projects deliver few real-world benefits to anyone other than their promoters.

‘Force for good’ Heart is a long-time anti-Craig Wright loudmouth

Heart’s online bios (on his homepage and Twitter account) are clearly tailored to appeal to the easily-led and wealth-aspirational reader. They state in the first sentences that he owns the world’s largest cut diamond, owns US$10 million in expensive watches, and owns $3 million worth of cars, including the quickest Ferrari ever made. They also mention that he donated $27 million to charity and has an IQ of 145.

“Richard Heart is a force for good in this world,” his homepage heading proclaims.

“I’ve gotten thousands of people to stop gambling, trading, drinking, playing grinding video games,” he adds at the bottom of the page. These are indeed worthy achievements—although we’re not sure how creating and marketing your own digital currency token for years helps dissuade people from trading or gambling.

Heart has been a particularly outspoken critic of Dr. Craig S. Wright and his claims to be Bitcoin creator Satoshi Nakamoto. His reason for doubting Dr. Wright, he claims, is the simple fact that Wright has not “proven” himself by moving Satoshi Nakamoto’s Bitcoins. This is a common trope among Wright’s doubters—although several have stated they still would not believe Wright even if he did move Satoshi coins. As Dr. Wright has reiterated many times, simply having the “private keys” to some Bitcoin doesn’t prove you own, or have ever owned them. 

“Why does Craig need your money, if he’s Satoshi?” Heart also asks in a video interview posted to YouTube in September 2022, ignoring the fact that Craig Wright (unlike Heart) has never asked anyone for money.

And this scammer called Craig Wright a fraud. What a joker.

— The enchanted Prince (@Bayalumaya1) December 26, 2022

In one infamous incident three years ago, Heart heckled Dr. Wright from the audience following Wright’s presentation at a blockchain event.

“You’re only a public figure because you cosplay as Satoshi,” he said into the microphone, repeating the erroneous claim that Dr. Wright is somehow “on the run from the Australian Tax Office” (despite him living in the U.K.). His anti-Craig tirade ended only when event organizers raised the room’s music volume to stop it.

Heart built up a large following on social media as a Bitcoin maximalist and market commentator before starting the HEX project. Before his involvement in the blockchain world, he was an online marketer named Richard James Schueler, also known as the “Spam King” and purveyor of life-extension products.

Once again, it seems those who attack Dr. Wright the loudest with ridiculous allegations are the ones who themselves are set on scooping up as much money as possible from gullible crypto investors. HEX has never demonstrated any real-world utility, and focused mainly on gaining new investors and followers. Contrast this with BSV, the original Bitcoin protocol, which has several (very-real) large-scale use cases without “staking” promises or investor networks—then ask yourself who the real frauds and criminals are.

Watch: Law & Order: Regulatory Compliance for Blockchain & Digital Assets