HEX Founder Richard Heart Wins US Legal Battle Against SEC

Richard Heart, the founder of HEX, has declared a significant victory over the US Securities and Exchange Commission (SEC) after a prolonged legal battle. On April 21, the SEC announced that it would not amend and refile its fraud case against Heart. This decision came after a court dismissed the SEC’s fraud charges against Heart on February 28. Heart celebrated this outcome on X, stating that HEX, PulseChain, PulseX, and himself had achieved regulatory clarity that few other crypto projects could boast.

Heart, whose real name is Richard James Schueler, is still wanted in Europe for alleged tax fraud and assault on a minor. He remains on Interpol’s wanted list. The SEC had initially filed a complaint against Heart and his projects in July 2023, alleging securities fraud and violations of securities registration. The SEC sought to bar Heart and his projects from participating in any crypto asset security offerings and to recover all ill-gotten gains.

The SEC’s complaint highlighted Heart’s claims that HEX could offer incredible rewards to investors, as well as his spending of over $12 million from HEX offerings on luxury items such as watches, sports cars, and a 555-carat diamond ring. Heart’s legal team argued that the SEC lacked jurisdiction because the activities in question did not occur within the United States. US District Judge Carol Bagley Amon agreed, ruling that the statements regarding HEX’s price were targeted at a global audience, not US investors.

Despite this legal victory in the US, Heart faces ongoing legal issues in Finland. Finnish authorities have remanded him into custody in absentia for alleged tax evasion and assault. Finnish investigators found discrepancies between Heart’s income reporting and the tax service’s estimates. Helsinki police seized millions of euros worth of luxury watches from a residence in Espoo near Helsinki. Europol also stated that Heart is wanted for assaulting a minor, which has earned him a profile on Europol and Interpol’s most wanted criminal lists.

Industry observers and analysts have long claimed that HEX operates as a Ponzi scheme, citing promises of a 38% annual percentage yield, larger profits for onboarding new users, and Heart’s ownership of some 90% of HEX tokens. Despite having committed acolytes on social media, the token’s price has barely moved since Heart’s legal troubles with the SEC began. At the time of publishing, HEX’s price was $0.002253, with 24-hour transaction volumes barely topping $250,000.

Heart’s legal victory in the US provides a precedent that could benefit the crypto industry, but his ongoing legal issues in Europe cast a shadow over his future. The dismissal of the SEC’s case was based on jurisdiction rather than a lack of evidence, raising questions about how long HEX can sustain its operations. The crypto community will be watching closely to see how this situation unfolds.