Richard Heart, the founder and promoter of Hex, PulseChain, and PulseX projects, has been charged by the SEC for allegedly "recycling" investor funds during the initial presale of HEX. This helped him deceive investors about the success of the sale and attract more victims. The SEC also accuses Hex of having a fake HEX "staking" program, which was primarily intended to manipulate the token's price higher. The flawed financial models of HEX and Terra relied on leverage, lockups, and cults of personality, and both were later accused of being explicit frauds. As a result of these charges, the tokens associated with these projects have dropped by 50% or more.