Can Richard Heart's HEX Survive Its Legal Victories? Why the SEC Win Might Not Change Everything

Richard Heart’s legal showdown with US securities regulators has taken a dramatic turn. After months of courtroom battles, the SEC announced on April 21 that it would not refile its fraud allegations against the HEX founder and his associated projects—PulseChain and PulseX. A federal court had already dismissed the original case in February, dealing a significant blow to the agency’s enforcement efforts.

Heart, the high-profile creator behind the controversial HEX cryptocurrency, quickly declared total victory. On social media, he announced that Richard Heart, alongside HEX, PulseChain, and PulseX, had achieved what few crypto ventures accomplish: complete regulatory clarity with the SEC. The dismissal centered not on the strength of evidence, but on jurisdictional grounds—the court found that HEX’s promotional activities targeted a global audience rather than specifically US investors.

How Richard Heart Dodged the SEC Case

The SEC’s 2023 complaint against Richard Heart (whose legal name is Richard James Schueler) alleged serious violations. Regulators accused him of using HEX to defraud investors through exaggerated wealth promises and misappropriation of funds. Court documents revealed that Heart allegedly spent over $12 million from HEX token sales on personal luxuries—including designer watches valued at 9 million euros, exotic sports cars, and a 555-carat diamond ring.

US District Judge Carol Bagley Amon ultimately sided with Heart’s legal team on a procedural matter. Since Heart doesn’t reside in the United States and the alleged misconduct occurred through digital wallets and decentralized platforms with no clear US nexus, the judge ruled the SEC lacked jurisdiction. This technical victory, however, doesn’t necessarily vindicate HEX’s business model or address longstanding concerns about its sustainability.

The Cryptocurrency That Won’t Go Away—Despite Skepticism

Industry analysts and observers have long questioned HEX’s legitimacy. Critics point to several red flags: the promise of a 38% annual percentage yield (unusually high by any standard), incentive structures that reward onboarding new participants, and Heart’s control of approximately 90% of HEX’s total token supply. These characteristics have led many to compare HEX to a modern Ponzi scheme—a structure that prioritizes early investors over long-term sustainability.

The market appears skeptical of HEX’s long-term prospects. While the token’s price spiked briefly following the SEC dismissal announcement, the broader trend tells a different story. Since Richard Heart’s legal troubles began, HEX has barely moved. At the time of publication, HEX traded at $0.002253, with 24-hour trading volumes struggling to exceed $250,000. For a project claiming regulatory legitimacy, these metrics suggest limited investor confidence.

European Legal Troubles Complicate the Picture

Richard Heart’s victory against the SEC may prove hollow given mounting legal pressure elsewhere. Finnish authorities have escalated their pursuit of the HEX founder on separate charges. In September 2024, Helsinki police remanded Heart into custody in absentia while investigating suspected gross tax evasion. Authorities reportedly discovered significant discrepancies between Heart’s reported income and tax authority estimates, leading to the seizure of millions of euros in luxury watches from residences near Helsinki.

Additionally, Europol has designated Heart as wanted for assault, alleging that he physically attacked a 16-year-old. The combined investigations have placed him on both Europol and Interpol’s wanted criminal lists. These developments in Europe suggest that regulatory scrutiny of Richard Heart extends far beyond American borders and encompasses serious criminal allegations.

What’s Next for HEX?

The SEC’s decision to abandon its case represents a technical win for Richard Heart but may offer limited practical relief for HEX investors. The project continues to face skepticism regarding its economic model, while the founder confronts mounting legal challenges across multiple jurisdictions. Even if HEX maintains regulatory clarity in the United States, European prosecutors show no signs of backing down—and these escalating pressures could ultimately determine the project’s long-term viability in ways that US regulatory victory cannot.