Crypto founder allegedly bought ‘The Enigma,’ the largest black diamond in the world, after raising more than $1 billion in unregistered securities

At 555.55 carats, "The Enigma" is believed to be the largest black diamond on the planet. (Credit: Giuseppe Cacace—AFP/Getty Images)

The Securities and Exchange Commission continued its broadside against the crypto industry on Monday when it sued Richard Schueler (who goes by Richard Heart) and his crypto projects—Hex, PulseChain, and PulseX—for allegedly raising more than $1 billion by offering unregistered securities.

In the lawsuit, the SEC alleges Schueler used at least $12 million of the proceeds to buy himself a suite of luxury goods: nearly $7.2 million worth of luxury cars and watches, including a 2020 white Ferrari Roma and a Rolex Daytona Eye of the Tiger, and almost $5 million paid to Sotheby’s for “The Enigma,” a 555-carat black diamond said to be the largest in the world.