Over the years, social media influencers have earned a bad reputation among regulators for selling risky, uncontrolled tokens to millions of investors. Pursuing crackdown on such scenarios, the US Securities and Exchange Commission (SEC) allegedly issued a subpoena to influencers who have been found promoting cryptocurrencies such as HEX, PulseChain, and PulseX.
Swedish researcher Eric Wall shared an official letter from the SEC dated November 1, addressed to influencers. Law:
“We believe you may have documents and data relevant to an ongoing investigation conducted by US Securities and Exchange Commission personnel.”
The letter was accompanied by a citation issued as part of the investigation, which required the influencers in question to produce the required documents by November 15, 2022.
BOYS. IS HAPPENING. Hexicans influencers are sued by the SEC over HEX, PulseChain, and PulseX. The HEX news channels are full of information on how to destroy your digital evidence pic.twitter.com/PrTYBRT9Wc
– Eric Wall X (@ercwl) November 5, 2022
While members of the HEX community retaliated against the discovery as fake news, Wall quickly pointed out that the HEX news channels on Discord and Telegram were filled with information on preserving anonymity about data and discussions.
He also challenged the Hexians who claimed the quote was false, stating:
“Hexicans: Time to post the non-blurry versions here. If they are fake, no harm, right? “
On November 3, Richard Heart, the founder of HEX, tweeted:
“Do you accept the good advice that is given to you? You think so, but really? Are you using secret chats with self-destruct timer? Or are you a slow learner? Is it difficult for you to click the buttons? “
The above tweet supports Wall’s claims. However, Wall claims that he has no respect for the SEC and that he is just sharing the information.
Related: Web3 Foundation makes a bold statement to the SEC: ‘DOT is not a security. It’s just software ‘
SEC President Gary Gensler recently used SEC enforcement examples against cryptocurrency lending firm BlockFi and a former Coinbase employee to justify the agency’s actions on violations of U.S. securities laws while writing for the annual Institute on the securities regulation of the Practicing Law Institute.
According to the SEC chairman, the commission’s law enforcement personnel consisted of “public officials” and “police on the go” who were “combining public zeal with unusual skills.”