Richard Heart Dodges SEC Fraud Charges — But Faces Darker Allegations in Europe
A Crypto Victory With Shadows on the Horizon
Richard Heart, founder of crypto project HEX, has claimed a stunning legal victory over the U.S. Securities and Exchange Commission (SEC), bringing a controversial chapter in crypto regulation to a dramatic pause. But while the SEC may be backing down, the embattled crypto figure still faces serious charges in Europe, ranging from tax evasion to alleged assault on a minor.
SEC Walks Away from HEX Fraud Case
In what Heart has described as a rare and decisive win for a blockchain project, the SEC announced on April 21 that it would not refile its fraud case against him, HEX, or affiliated projects PulseChain and PulseX.
This comes after a February 28 court ruling where U.S. District Judge Carol Bagley Amon dismissed the SEC’s case, citing a lack of U.S. jurisdiction. The judge determined that Heart’s activities occurred outside U.S. borders and that his marketing was directed globally—not to U.S. investors.
“The alleged misappropriation occurred through digital wallets and platforms, none of which were alleged to have any connection with the United States,” Judge Amon stated.
Heart celebrated the development on X (formerly Twitter), declaring:
“Richard Heart, PulseChain, PulseX, and HEX have defeated the SEC completely and have achieved regulatory clarity that nearly no other coins have.”
Behind HEX’s Legal Tangle: Money, Marketing, and Mistrust
The SEC’s July 2023 complaint alleged Heart had violated securities laws by promoting HEX as a high-reward investment without proper registration. Heart had promised investors outsized gains and allegedly used more than $12 million in investor funds on luxury items including sports cars, watches, and a 555-carat diamond.
Heart, whose real name is Richard James Schueler, is known for flaunting his wealth. In one video, he paraded Louis Vuitton cases stuffed with watches worth €9 million. His ostentatious lifestyle added fuel to the fire in a case already rife with regulatory skepticism.
Finland Alleges Tax Evasion and Assault
While Heart’s U.S. legal troubles may be on ice, Finnish authorities are actively pursuing him. According to Finnish media reports from September 2024, Heart is wanted for gross tax evasion and has been remanded into custody in absentia.
“Based on the very considerable amount of money in question and the long-term and planned nature of the activity, there are grounds to suspect gross tax evasion,” said Detective Harri Saaristol of the Helsinki police.
Authorities also allege that Heart assaulted a 16-year-old minor, dragging the victim by the hair and knocking them to the ground. This allegation has placed him on both Europol and Interpol’s most-wanted lists.
Police have seized millions of euros worth of luxury watches from a residence tied to Heart in Espoo, near Helsinki.
A Win for Crypto Freedom or a Loophole Exploited?
Although Heart’s legal team triumphed in the U.S., critics argue the win hinged more on jurisdictional loopholes than exonerating evidence.
HEX’s price spiked briefly following the dismissal of SEC charges but has remained largely stagnant. At press time, HEX trades at $0.002253, with 24-hour volume hovering around $250,000—a far cry from its earlier highs.
Industry analysts continue to warn about HEX’s sustainability, comparing it to a modern Ponzi scheme given its promises of 38% APY and Heart’s control of roughly 90% of token supply.
What’s Next for Richard Heart and HEX?
Though clear of U.S. regulatory charges, Heart’s future—and that of HEX—remains uncertain. With ongoing criminal investigations in Europe, the crypto world watches closely to see whether the self-proclaimed victor will continue to defy the odds… or finally face the consequences.
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