Richard Heart Triumphs in US Court: HEX Escapes SEC Allegations

The cryptocurrency world is experiencing an unusual case: Controversial crypto pioneer Richard Heart declares himself the winner over the U.S. Securities and Exchange Commission after years of intense legal battles. In April 2025, the SEC announced it would not revise or refile its fraud charges against the former child star and crypto advocate. A U.S. federal court had already dismissed the original fraud allegations against Heart in February 2025.

On social media, Richard Heart announced an unprecedented victory: HEX, his Layer-1 blockchain project PulseChain, and the decentralized exchange PulseX not only defended themselves against the SEC but also achieved regulatory clarity that few other crypto projects can claim. However, this portrayal is only half the truth.

The Key Court Victory and Its Limits

The legal win was not based on a confirmation of Heart’s innocence but on a procedural technicality: lack of jurisdiction. In summer 2023, the SEC filed a complaint against Heart—using his real name, Richard James Schueler—as well as against HEX, PulseChain, and PulseX. The agency accused him of securities fraud, including allegedly enticing investors with unrealistic profit promises through HEX.

However, Heart’s lawyers argued that the SEC had no jurisdiction over this case because the activity in question did not take place on U.S. soil. Presiding Judge Carol Bagley Amon agreed: she ruled that Heart’s public statements about HEX targeted a global audience and were not aimed specifically at U.S. investors. As a result, the case was no longer relevant to federal courts.

This outcome highlights an important boundary: Richard Heart was not acquitted because the SEC could prove his innocence, but because the agency failed to establish jurisdiction in the first place.

Richard Heart’s Growing Challenges in Europe

While Heart can breathe a sigh of relief in the U.S., his legal troubles are mounting on the other side of the Atlantic. Finnish authorities are pursuing the crypto founder—not only for alleged tax evasion but also for suspicion of assaulting a minor.

In fall 2024, Finnish media reported that Heart, who was reportedly temporarily based in Helsinki, was taken into custody in absentia. Finnish tax police had launched investigations and found irregularities in Heart’s income declarations. Detective Harri Saaristol made a notably blunt statement: given the “extraordinarily substantial amounts of money” and the “long-term and planned nature” of the activities, there are “significant reasons to suspect gross tax evasion.”

The investigation led to a spectacular seizure: Finnish police found luxury watches worth several million euros in an apartment in Espoo near Helsinki—echoing Heart’s notorious display of wealth on social media. He had previously showcased Louis Vuitton suitcases filled with expensive watches valued at around nine million euros. Reports also indicate Heart invested over twelve million dollars from HEX proceeds into personal luxury goods like sports cars and a 555-carat diamond ring.

Europol and Interpol have now added Richard Heart to their wanted lists. The assault charges weigh particularly heavily in European prosecution: Heart is accused of physically attacking a 16-year-old victim by grabbing their hair, pulling them to the stairs, and throwing them to the ground.

HEX: Between Technical Promises and Fundamental Questions

The fundamental question for industry observers is: Can Richard Heart truly keep HEX alive after leaving the U.S. and being wanted in Europe?

The HEX project itself faces intense criticism. Many analysts categorize HEX as a variant of a modern Ponzi scheme—particularly due to three characteristics: First, the protocol promises an annual percentage yield of 38% for “staking” (locking up coins), a promise that raises sustainability concerns. Second, early and large investors benefit exponentially from recruiting new users. Third, about 90% of all HEX tokens are held by Heart himself, reflecting dependence on a central figure.

Despite an active social media following, HEX is effectively paralyzed. After a brief price surge following the SEC dismissal, the token has moved sideways long-term. At the time of measurement, HEX was priced at $0.002253; its 24-hour trading volume barely exceeded $250,000—a notably low level for a project claiming global ambitions.

The key question remains unanswered: a court victory based on procedural technicalities may temporarily boost Richard Heart’s credibility in the U.S. regulatory landscape, but it does not address the deeper skepticism about HEX as an economic model. As Heart faces warrants in Europe and his personal creditworthiness declines, this could prove to be a long-term poison for the project.