Key Takeaways
- The influencers in question are asked to produce the required documents by Nov. 15, 2022.
- The 2-year-old HEX project has increased by 948,00% since its inception
In recent times, the US Securities and Commission (SEC) has increased its watch over companies in the Web3 space. As per reports, SEC has now issued a subpoena to influencers who were found promoting crypto projects such as HEX, Pulsechain, and PulseX.
The issue first came to light after renowned crypto evangelist Eric Wall took to Twitter, sharing the official documents sent by the regulatory watchdog. “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,” his tweet reads.
In the official document shared by Wall, the influencers in question were asked to produce the required documents by Nov. 15, 2022. As soon as Wall’s tweet started gaining traction, the HEX community members were quick to defend the token, arguing that Wall was spreading “fake news.”
However, an ex-SEC lawyer has pointed out that the official documents do seem legit. “As someone who sent 100s of subpoenas as an SEC lawyer, I’m here for all the misinformed responses claiming the subpoena is fake (it’s almost certainly legit, sorry). Please don’t blindly accept efforts to “debunk” a subpoena from people who have never seen one before,” they said.
Recently, there has been increasing concern over whether the HEX project was legitimate or a scam. The 2-year cryptocurrency project has increased by 948,00% since its inception. The HEX token is based on the Ethereum blockchain and is also one of the most aggressively marketed crypto projects.
Those who stake HEX tokens are given an average of 38% returns. The figure is lucrative because most US banks do not provide over 2% annual interest. The project has earlier been accused of following a get-rich-quick scheme. HEX’s current market cap is $5.01B. 24-hour HEX volume is $7.05M.
SEC’s increased crackdown on crypto fir has led to several arrests in recent months. Earlier this year, SEC charged 11 people behind Forsage, calling it a $300 million Ponzi scheme disguised as a smart contract system. SEC has recently conducted high-profile investigations of bankrupt crypto companies Celsius Network and Three Arrows Capital, along with a reported probe into Yuga Labs and the wider nonfungible token (NFT) space.
In September, Gurbir Grewal, the SEC’s enforcement director, said SEC will investigate crypto firms regardless of the narrative that it’s “stifling innovation.” However, SEC is only one of several government agencies going after crypto.US Treasury Department and Commodity Futures Trading Commission is also investigating several crypto firms to see if they are violating securities laws or not.
