Thread by @HexCadet

Dearest #Hexicans,

I've been seeing some FUD and misinformation about the RH Case & $Hex.

Since we pride ourselves on being accurate and thorough with our research and communications, here's a thread to get you up to speed:

🧵Strap in, here we go!:👇

1) Yes, this is a real civil suit filed in South Carolina.
Here is the case information:

2) Here is the judge and jurisdiction. It's in South Carolina:

3) The case is a class action against Richard as an individual. The lead plaintiff is unnamed "John Doe" who with .587 Ether @ $1,806, and purportedly purchased 3,675 Hex "from RH's smart contract" on September 24, 2021, where it was trading for 47 cents (aka, bought el topo!):

4) Keen eyes here might note that buying Hex "from RH's smart contract", is, of course, an impossibility because you can't purchase from the Hex smart contract. The Adoption Amplifier ended on day 353, or November 19, 2020. So, we're off to some incorrect statements already.

5) Plaintiff is using a pseudonym "due to the aggressive and threatening actions of others towards those who have criticized the Hex investment scheme and RH, and will reveal HIS identity when court-ordered protections are instituted".
Ugh Hexicans, you meanies!!

6) Plaintiff seeks a determination the Hex is a security.

The complaint, of course, omits all the truly amazing reasons why it is NOT a security.
Hexicans know the Howey test backwards and forwards...I'll save those arguments for another thread.
Why is Howey important you ask?

7) Well, Howey is critical because the alleged legal violations here turn on whether or not Hex is a security.

TLDR: Hex no security, RH no bad guy.

See the violations here:

9) Interestingly, this means a decision on this point by the judge could may have Ripple (pun intended) effects on whether OTHER exchanges or institutions deem Hex to be or not be a security.
This would require a ruling though, and probably an appeal, which could take YEARS.

8) But most class actions settle long before a ruling happens so maybe that's unlikely.

Will RH settle? Has he even been served? Some interesting facts on that...

9) Plaintiffs did a bunch of background searching on RH and his family. Due to RH's unknown whereabouts, the court GRANTED service on RH using 5 electronic means:
(1) Twitter mention
(2) Twitter direct message
(3) email
(4) Telegram group chat and
(5) Telegram direct message

10) What kind of legal precedent did plaintiffs use to serve RH in such a clever way?

drumroll...

Why, none other than the amazing creativity brought by Hexicans ourselves: Glorious Cox v. Cmc. @DavillierLaw the irony!

Plaintiff firms must have chuckled at that one.

11) So let's take a second to kill some Fud.

FUD 1: Richard Heart is going to jail!!!

Huh? No, not from this. This is a civil suit in South Carolina.

12) FUD: This is terrible for Hex!!

Is it? Most of this case turns on Hex being a security, and man, there are a LOTT of very compelling arguments that Hex is NOT a security.

In fact, one possible outcome is that RH fights it and wins on the merits and gets courts to agree.

13) That could forever enshrine $Hex as being deemed to be NOT a security by a court (basically never happened for any other asset).

Imagine this future:
"Hey Coinbase...uhh this has been litigated and settled. Hex isn't a security. Here's the judge's opinion."

14) What's next? Well, if you bought $Hex, you are a part of the "putative class" in this case. John Doe is the lead, and the class must be certified first in order to be a full class action. That takes a while and often settles or ends even before then.

15) But, if there's no response by RH, it could go to a default judgement, and then good luck trying to collect...

16) RH could fight it, ignore, settle, who knows. But, in the meantime, we can monitor and see what happens next!

There is a lot more here that I left off, but a 16 thread is enough for now.

All of crypto should root for $Hex on this one!

Signing off for now!
❤️,
Hex Cadet

My favorite part