How Richard Heart's HEX Narrowly Escaped SEC Prosecution on a Jurisdictional Loophole

Richard Heart has declared a sweeping victory in his years-long legal battle against the US Securities and Exchange Commission. On April 21, the SEC announced it would not pursue amendments or refile its fraud allegations against the former actor-turned-crypto evangelist. The initial fraud charges had already been dismissed on February 28 by a federal court. Through his social media channels, Heart boasted that his cryptocurrency ventures had achieved something rare in the industry: “Richard Heart, PulseChain, PulseX, and HEX have completely overcome SEC opposition and obtained regulatory clarity that virtually no other digital assets have secured.”

While HEX may now operate without immediate threat from US authorities, Heart’s legal troubles are far from over. European law enforcement has different plans, with investigations targeting him for both alleged tax evasion and assault allegations.

What the SEC Originally Alleged Against HEX and Its Founder

In summer 2023, regulators filed a comprehensive complaint against Heart (legal name: Richard James Schueler), along with his three main projects: HEX, the blockchain infrastructure PulseChain, and its associated decentralized exchange PulseX. The charges centered on unregistered securities offerings and investor fraud.

Federal prosecutors argued that Heart made extravagant promises about HEX’s profit potential, claiming investors could achieve extraordinary returns. Court documents revealed that Heart personally diverted over $12 million from HEX revenues toward luxury acquisitions—high-end timepieces, supercars, and an exceptionally large diamond. His public persona reinforces this lifestyle; on social platforms, he has showcased collections of designer watches allegedly valued at approximately 9 million euros.

The SEC sought penalties including operational restrictions on future crypto security offerings and recovery of proceeds deemed illegally obtained.

The Jurisdictional Problem That Saved Him

Heart’s legal defense ultimately hinged on a procedural technicality. His lawyers challenged the case by arguing that the SEC had failed to establish any US-based activity. Given that Heart maintains residency outside American borders, this argument held weight.

US District Judge Carol Bagley Amon sided with the defense. She determined that HEX promotional statements were directed at an international audience rather than specifically targeting Americans. “The misappropriation claims reference digital wallet transactions and crypto platforms with no demonstrated United States nexus,” the judge stated, effectively nullifying federal jurisdiction.

This wasn’t a vindication on the merits—the judge sidestepped examining whether fraud actually occurred, instead ruling the American court system had no authority to adjudicate the matter.

Finland Now Pursues Multiple Criminal Allegations

While US regulators stepped back, European authorities intensified their scrutiny. Finnish law enforcement has actively investigated Heart on separate fronts.

Tax authorities initiated an inquiry after determining Heart’s reported income diverged significantly from estimated tax obligations. Investigators allegedly discovered millions of euros in seized luxury watches from an Espoo residence. Finnish police detective Harri Saaristol commented: “Given the substantial sums and systematic nature of the activity, we have reasonable cause to suspect aggravated tax evasion.”

Beyond financial crimes, Europol and Interpol have flagged Heart for assault. According to international law enforcement records, he is wanted for physically attacking a 16-year-old victim, including hair-pulling and striking. These matters remain under active investigation.

Skepticism Persists About HEX’s Long-Term Viability

Industry analysts have long characterized HEX through a critical lens, with many describing its mechanics as resembling a Ponzi structure. The evidence includes an exceptionally generous 38% annual yield promise, incentive structures that reward user recruitment, and the fact that Heart controlled approximately 90% of token supply.

Heart’s SEC victory prompted a temporary price surge, but broader trends paint a different picture. HEX’s price has stagnated since his securities troubles began. Current trading reflects minimal activity: the token trades around $0.002253 with daily volumes barely exceeding $250,000.

The question remains whether this cryptocurrency venture can sustain operations as genuine scrutiny from multiple jurisdictions continues and skepticism about its fundamental structure persists.