Influencers of $7 billion crypto project issued subpoenas by SEC – Here’s what you need to know
The US Securities and Exchange Commission (SEC) has subpoenaed some influencers of HEX, a crypto project with a market capitalization of around $7 billion.
Prominent crypto evangelist Eric Wall first revealed the news on Twitter, sharing the official documents sent by the regulatory body. He added that influencers of two other crypto projects, PulseChain and PulseX, have also received subpoenas from the SEC.
“GUYS. IT’S HAPPENING. Hexic influencers are being subpoenaed by the SEC over HEX, PulseChain and PulseX. The HEX news channels are filled with information on how to shred your digital evidence,” Wall said.
The Hexican community initially called the letters fake, claiming it’s just FUD. “Subpoena must be served in the standard way so you’ll probably get punked,” one Twitter user so.
However, an ex-SEC attorney who goes by the Twitter handle Marc_Fagel revealed that the subpoenas appear legitimate.
“As someone who served hundreds of subpoenas as an SEC attorney, I’m here for any misinformed responses that claim the subpoena is bogus (it’s almost certainly legit, sorry). Don’t blindly accept people’s attempt to ‘decline’ a subpoena who have never seen one before,” they so.
When asked about the purpose of this investigation, Marc replied that the SEC receives thousands of tips each year but only opens a few hundred investigations. “And it is difficult to determine the scope of an investigation from a single subpoena. Organizer payments are guaranteed; anything else is speculation,” he added.
The Hex project describes itself as the first certificate of deposit (CD) or fixed deposit on a blockchain. According to the website, Hex coin offers an interest premium to investors who lock tokens for a certain period of time, similar to traditional fixed deposits.
Notably, the HEX cryptocurrency has increased by 948.00% since its inception in 2019.
SEC Increases Efforts to Bring Oversight to Crypto
While crypto Ponzi schemes are nothing out of the norm, the SEC and other financial regulators have recently increased their efforts to ensure that fraudsters do not go unpunished.
As reported, the SEC filed charges against the founder and three promoters of Trade Coin Club last week, arguing that they duped investors into sinking money into a fraudulent crypto trading scheme.
Similarly, in early August, the agency charged 11 people for their roles in an alleged crypto pyramid and Ponzi scheme, Forsaken, which raised over USD 300 million from millions of investors worldwide, including in the United States.
