Influencers Issued Subpoenas by SEC

T

he US Securities and Exchange Commission (SEC) has demanded information from some social media users who have promoted HEX, a cryptocurrency project with a value of approximately $7 billion.

Prominent crypto evangelist Eric Wall first revealed the news on Twitter, sharing official documents given by the regulatory body. He noted that additional influencers of two other crypto projects- PulseChain and PulseX- have also received subpoenas from SEC.

"GUYS. IT’S HAPPENING. Hexicans influencers are getting subpoenaed by the SEC over HEX, PulseChain, and PulseX. The HEX information channels are filled with information about how to shred your digital evidence," Wall said. 

The Hex project is a blockchain-based Certificate of Deposit (CD) or fixed deposit. According to its website, investors who lock their tokens for a set period of time can earn an interest rate premium, similar to traditional fixed deposits.

Notably, the HEX cryptocurrency has increased by 948% since its inception in 2019. While crypto Ponzi schemes are nothing out of the norm, the SEC and other financial regulators have lately been increasing their efforts to make sure these scams don't go unpunished.

The SEC filed charges against the founder and three promoters of Trade Coin Club last week for allegedly tricking investors into investing money in a fraudulent crypto trading bot.

In a similar case, 11 people were charged early August for their roles participating in Forsage, an alleged crypto pyramid and Ponzi scheme that scammed 300million USD from worldwide investors, including some from the United States.

Mike

An editor at Coincrop

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Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.