Huge Diamond Bought Illegally With Crypto Proceeds, SEC Alleges

The creator of crypto token Hex illegally used millions of dollars of investor funds to buy a 555-carat black diamond known as “The Enigma,” according to the US Securities and Exchange Commission.

Wall Street’s main regulator alleged in federal court on Monday that Richard Schueler, who goes by Richard Heart, raised more than $1 billion by selling unregistered securities, including the Hex coin and other tokens affiliated with his PulseChain blockchain network and PulseX decentralized finance platform. Heart and PulseChain used at least $12.1 million of investor funds for personal luxury purchases, including the diamond, expensive watches and ...