World News

SEC sues Richard Heart and his projects Hex, PulseChain and Pulse X for fraud, securities violations on July 31, 2023 at 4:46 pm

Published

1 year ago

July 31, 2023

The unregistered offerings raised more than $1 billion in crypto from investors, the agency stated.

Heart and PulseChain also were charged with fraud “for misappropriating at least $12 million of offering proceeds to purchase luxury goods including sports cars, watches, and a 555-carat black diamond known as ‘The Enigma’ – reportedly the largest black diamond in the world.”

PulseChain launched in May, and PulseX is the exchange on its blockchain that allows users to exchange other tokens on its network, according to its website.

The two entities were off to a rocky start due to their connection to Hex and some community members’ concerns about its fundamentals. Hex has been around since 2019 and doesn’t have a stellar reputation because many market players view it as a scam due to its advertisements as the first “blockchain certificate of deposit.” It claimed that users who stake its token could mine new coins with high APYs and deposits are worth “trillions of dollars” and are “worth more than gold, credit card companies and cash.”

With that said, Hex claims it’s not a scam, and even has a page on its website dedicated to clarifying itself.

The SEC echoed that Heart allegedly created the “staking” feature for HEX tokens, which he claimed would provide yields as high as 38%, the agency stated. The complaint further alleges that Heart “attempted to evade securities laws by calling on investors to ‘sacrifice’ (instead of ‘invest’) their crypto assets in exchange for PLS and PLSX tokens.”

From December 2019 to November 2020, Heart and Hex allegedly offered and sold HEX tokens in an unregistered offering, bringing in over 2.3 million ether, worth about $4,271,468,000 at present value, the SEC stated.

The SEC also alleged that between July 2021 and March 2022, Heart created two additional unregistered crypto tokens, PLS and PLSX, that raised hundreds of millions in crypto to support PulseChain and PulseX, respectively.

The price of the HEX, PLS and PLSX tokens fell 24%, 25% and 42%, respectively, on Monday after news of the SEC’s complaint.

In recent months, the SEC has ramped up efforts to crack down on the crypto industry, going after companies big and small for alleged securities violations, fraud, and other activities. As the agency continues to scrutinize the space, we could well see other firms facing lawsuits in the coming months.

All in all, the SEC’s issue is with companies treating crypto assets as securities, something that the industry and other government regulatory bodies don’t agree on.

Earlier this month, a federal court ruled that the XRP token, used for the Ripple blockchain, is not a security when sold to the broader public, but could be considered as one for institutional sales. The SEC had alleged in its case that Ripple and two executives had raised $1.3 billion in an alleged “unregistered, ongoing digital asset securities offering.”

Stu Alderoty, chief legal officer of Ripple Labs, told me on TechCrunch’s Chain Reaction podcast that the ruling could potentially provide clarity for other pending lawsuits. “I think our case and the decision rendered by our judge will provide comfort to other judges that the SEC is just misguided.”

But, he said, the question that policymakers and lawyers should be asking is, “What’s the best regulatory framework that we can create that protects the integrity of the market?”

The U.S. Securities and Exchange Commission (SEC) said it is suing Richard Schueler, known online as Richard Heart and his three crypto projects, Hex, PulseChain and PulseX, for conducting unregistered offerings of “crypto asset securities.” The unregistered offerings raised more than $1 billion in crypto from investors, the agency stated. Heart and PulseChain also were

Film Industry

Jay-Z Denies Allegations Amid Lawsuit

Published

2 days ago

December 9, 2024

Bolanle Media Staff

Jay-Z, the renowned rapper and music mogul, faces serious allegations in a recently amended civil lawsuit. According to ABC News and NBC News, the suit accuses him and Sean “Diddy” Combs of raping a 13-year-old girl at an MTV Video Music Awards after-party in 2000.

The lawsuit, initially filed in October 2024, was updated on Sunday to include Jay-Z as a defendant alongside Combs. The plaintiff, identified only as “Jane Doe,” claims she was assaulted after being driven to the party following the awards show.

Jay-Z, whose real name is Shawn Carter, vehemently denies the allegations. He released a statement on X calling the lawsuit a “blackmail attempt” and questioning why it was filed as a civil case rather than a criminal one. The rapper expressed concern about the impact on his family, stating he and his wife Beyoncé would need to discuss the situation with their children.

Combs, who is currently in federal custody on separate charges, has also denied the accusations through his attorneys. The lawsuit alleges that an unidentified female celebrity was present during the incident but did not intervene.

The case has garnered significant media attention, with both artists’ reputations at stake. As the legal process unfolds, the music industry and public await further developments in this high-profile case.

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Business

David Sacks: The New White House AI and Crypto Czar

Published

5 days ago

December 6, 2024

Bolanle Media Staff

According to CNBC and NBC News, David Sacks, a prominent venture capitalist and former PayPal executive, has been appointed as the White House AI and Crypto Czar by President-elect Donald Trump. This newly created position underscores the incoming administration’s focus on artificial intelligence and cryptocurrency as critical areas for American competitiveness.

Role and Responsibilities

Sacks will be tasked with several key responsibilities in his new role:

Guiding policy for the administration in AI and cryptocurrency
Establishing a legal and regulatory framework for the cryptocurrency industry
Safeguarding free speech online, and steering away from Big Tech bias and censorship
Leading the Presidential Council of Advisors for Science and Technology

Trump emphasized that Sacks will focus on making America the clear global leader in both AI and cryptocurrency.

Background and Qualifications

David Sacks brings a wealth of experience to his new position:

Former Chief Operating Officer of PayPal
Founder of Yammer, which was sold to Microsoft for $1.2 billion in 2012
Co-founder of Craft Ventures, a venture capital firm
Investor in major tech companies including SpaceX, Palantir, Uber, and Airbnb

Sacks is also known for his close associations with tech entrepreneurs like Elon Musk and Peter Thiel, being part of the “PayPal Mafia“.

Political Involvement

Sacks has been a vocal supporter of Trump during his campaign:

Hosted a fundraiser for Trump at his San Francisco estate, with tickets priced at $50,000 each and a more exclusive $300,000 tier
Delivered a speech at the Republican National Convention in Milwaukee in July 2024
Wrote a detailed essay on X explaining his reasons for supporting Trump

Implications for AI and Crypto Industries

The appointment of Sacks signals a potential shift towards more crypto-friendly policies and regulatory clarity for the digital asset industry. This move, along with Trump’s nomination of crypto advocate Paul Atkins to head the Securities and Exchange Commission, marks a departure from the stricter oversight approach seen under the previous administration.

As the White House AI and Crypto Czar, Sacks is expected to play a crucial role in shaping the future of these rapidly evolving technologies in the United States, potentially influencing their development and adoption on a global scale.

Business

Bitcoin Surpasses $100,000 Milestone: A New Era for Cryptocurrency

Published

6 days ago

December 5, 2024

Bolanle Media Staff

In a historic moment for the cryptocurrency world, Bitcoin has officially surpassed the $100,000 mark, reaching a new all-time high and solidifying its position as a major player in the global financial landscape. This milestone comes amid a surge of investor enthusiasm and significant market developments.

The Breakthrough

Bitcoin breached the $100,000 threshold in the early hours of December 5, 2024, climbing to approximately $103,000 before experiencing a slight pullback, according to BBC News. This remarkable achievement represents a culmination of Bitcoin’s impressive performance throughout 2024, with the cryptocurrency’s value on an upward trajectory for most of the year.

Factors Driving the Surge

Several key factors have contributed to Bitcoin’s meteoric rise:

Political Influence: The recent U.S. presidential election, with Donald Trump’s victory, has played a significant role in boosting Bitcoin’s price. Trump’s pro-cryptocurrency stance and his promise to make the U.S. a “crypto capital” have fueled investor optimism, according to BBC News and AP News.
Regulatory Developments: According to AP News, the imminent appointment of Paul Atkins, a former SEC commissioner known for his crypto-friendly views, as the next chair of the Securities and Exchange Commission has been seen as a positive sign for the cryptocurrency industry.
Institutional Adoption: According to BBC News, the approval of spot Bitcoin exchange-traded funds (ETFs) by the SEC has allowed major investment firms like Blackrock, Fidelity, and Grayscale to offer Bitcoin-linked products, attracting billions in investments.
Market Dynamics: The recent Bitcoin halving event, which reduced the rate of new Bitcoin creation, has contributed to increased scarcity and demand.

Expert Opinions and Predictions

Analysts and industry experts have weighed in on Bitcoin’s future prospects:

Dan Coatsworth, an investment analyst at AJ Bell, described the $100,000 milestone as a “magic moment” for Bitcoin.
Ryan Lee of Bitget Research suggested that Bitcoin’s momentum could propel it well above $100,000 by the end of the year, citing historical patterns and post-halving cycle trends.
Bitfinex analysts expect Bitcoin to continue accumulating and ranging, with potential for further growth in the coming months.

Cautions and Considerations

While the mood is largely optimistic, experts also urge caution:

Carol Alexander, a finance professor at Sussex University, warned that while Bitcoin’s price may continue to rise, many younger investors speculating on meme coins are facing losses.
According to BBC News and AP News, the cryptocurrency’s notorious volatility remains a concern, with some analysts reminding investors that Bitcoin does not function like conventional currencies and lacks traditional investor protections.

Looking Ahead

As Bitcoin enters this new phase, the cryptocurrency community is abuzz with speculation about its future trajectory. While some predict further gains, others caution against overexuberance. The coming months will likely be crucial in determining whether Bitcoin can sustain its position above $100,000 and potentially reach even greater heights.

With increased institutional involvement, evolving regulatory landscapes, and growing mainstream acceptance, Bitcoin’s journey past the $100,000 mark may well be just the beginning of a new chapter in the cryptocurrency’s history.