Richard Heart’s HEX token has been delisted from the prominent decentralized exchange, Uniswap, just days after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit claiming that the token is an unregistered security. The legal action against HEX was initiated on July 31.
It’s important to note that the delisting from Uniswap’s front-end user interface does not entirely restrict users from trading HEX. Instead, the cryptocurrency has been moved to Uniswap’s list of unsupported tokens, accompanied by a warning note. Traders can still conduct HEX transactions on the DEX by directly interacting with the token’s smart contract.
HEX‘s inclusion in the list of unsupported tokens implies that Uniswap has taken this measure based on legal considerations and concerns related to potential scams or trademark violations among listed cryptocurrencies.
The SEC’s lawsuit targeted Richard Heart, whose real name is Richard Schueler, accusing him of raising over $1 billion since 2019 through three crypto projects: HEX, PulseChain (PLS), and PulseX (PLSX). Uniswap was also mentioned in the complaint as one of the trading venues for Heart’s tokens. According to the lawsuit, PulseX was launched as a Uniswap fork, and transactions involving unregistered securities issued by Heart occurred on the DEX.
The lawsuit alleges that Heart misused funds invested in his crypto ventures to sustain a luxurious personal lifestyle, thereby defrauding investors of their money. This case is part of the SEC’s broader efforts to address regulatory concerns and protect investors in the cryptocurrency space, with previous cases against other crypto founders like Alex Mashinsky, Changpeng Zhao and Do Kwon.
As the situation develops, the crypto community is closely monitoring the outcome of the lawsuit and its implications for HEX and other tokens in the market. The delisting from Uniswap may signal a potential setback for the HEX project and could have ramifications for its trading volume and liquidity.
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