Richard Heart's US Litigation Reversal: HEX Faces New Dilemma After SEC Loss

Richard Heart, the controversial founder of HEX, claims he has achieved a complete victory in his long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). The case concluded in early 2026, giving this former child star and crypto advocate a breather from U.S. regulators. However, his troubles in Europe are intensifying—Finnish authorities are pursuing him on charges of tax fraud and violence against minors.

From Fraud Allegations to Court Victory: How Richard Heart Defeated the SEC

On February 28, 2024, U.S. District Court Judge Carolyn Bagley Ammon issued a key ruling dismissing all fraud charges against Richard Heart. Then, on April 21, 2024, the SEC officially announced it would not appeal the case, marking the end of a multi-year legal saga.

The SEC had filed suit against Richard Heart (born Richard James Schuler) and his projects HEX, Layer-1 blockchain platform PulseChain, and decentralized exchange PulseX in July 2023. The regulator accused Heart of deceiving investors with HEX and brought multiple charges including securities fraud and violations of securities registration laws. The SEC also sought to bar Heart from issuing any crypto asset securities and to recover all ill-gotten gains from alleged illegal activities.

The complaint emphasized that Heart repeatedly promoted HEX as capable of delivering incredible returns, claiming it could make investors rich overnight. Additionally, the SEC accused him of squandering over $12 million from HEX fundraising on luxury items—watches, sports cars, and a 555-carat diamond ring. Heart is no stranger to flaunting wealth; he has posted videos on social media showing collections of luxury watches in LV luggage, valued at €9 million.

Jurisdiction Is Key: Why the Judge Ruled the U.S. Has No Authority to Prosecute

The turning point in Heart’s case was a technical issue—jurisdiction. In 2024, his legal team filed a motion to dismiss, arguing that the SEC could not prove any fraud occurred within U.S. territory. The SEC opposed, but ultimately failed to persuade the judge.

Judge Ammon noted that while Heart’s statements about HEX’s price targeted a global audience, they were not specifically aimed at U.S. investors. More importantly, “the alleged fraudulent activity was conducted through digital wallets and crypto platforms that did not claim any connection to the United States.” Based on this, the judge ruled that U.S. federal courts lack jurisdiction over the case.

This ruling essentially means Heart, who does not reside in the U.S. and whose main trading activities occur outside the country, is outside the reach of U.S. regulatory authority. Technically, this is not a declaration of HEX’s business practices being “innocent,” but rather a dismissal due to lack of jurisdiction.

The European Shadow: Finnish Tax and Violence Allegations

While Heart’s legal troubles in the U.S. have temporarily eased, his issues in Europe are escalating. Finnish authorities are investigating him on multiple criminal charges. In September 2024, Finnish media reported that Heart, residing in Helsinki, had been extradited in absentia.

Finnish tax authorities found significant discrepancies between his reported income and their estimates. Helsinki police detective Harry Sarrishtol stated, “Given the large sums involved and the long-term, planned nature of the activities, we have reason to suspect serious tax fraud.” Subsequently, Finnish police seized luxury watches worth millions of euros from a residence in Espoo, near Helsinki.

More seriously, Europol has also accused Heart (listed as Schuler in reports) of assaulting a 16-year-old victim—specifically pulling hair and dragging the victim down stairs. These charges have led to his being wanted by both Europol and Interpol. The investigation is ongoing.

The Truth About HEX: Why the Market Remains Unmoved After the Win

Heart claims this legal victory has opened new horizons for the crypto industry and provides HEX with “a level of regulatory certainty that few other crypto projects have.” However, market reactions have been tepid.

HEX tokens briefly rose on the news of SEC’s loss but have largely stagnated since the dispute with U.S. regulators began. As of March 2026, HEX trades at around $0.002253, with a 24-hour trading volume of just over $250,000—an extremely thin market for a project that claims to have a strong community.

Industry analysts have long characterized HEX as a variant of a Ponzi scheme. Key evidence cited includes: an unrealistic 38% annual percentage yield promise, suspicious referral incentives, and Heart’s own holdings of about 90% of HEX tokens, creating an extremely centralized ownership structure. Despite a loyal following on social media, HEX’s market performance appears to have stalled.

While Heart has avoided U.S. legal sanctions, this is more due to jurisdictional loopholes than the legitimacy of his business model. HEX’s long-term viability depends on whether Heart can continue to evade European legal pursuits and whether the token’s price can regain market enthusiasm. Current signs suggest the project’s outlook is not optimistic.