Richard Heart defeats the SEC – but regulatory problems are far from over

In April 2025, a significant turning point occurred in the cryptocurrency industry: the U.S. Securities and Exchange Commission (SEC) announced it would not refile its fraud complaint against Richard Heart. This followed a court ruling in February 2025, in which a U.S. district court dismissed the charges against the crypto entrepreneur and former child star. For Heart and his projects HEX, PulseChain, and PulseX, this was a notable victory—but as behind-the-scenes details reveal, this win was less about an acquittal on the merits and more about jurisdictional technicalities.

The Jurisdictional Win: Why the SEC Failed

Judge Carol Bagley Amon’s court ruled that the SEC lacked jurisdiction over the case. The key reason: Heart’s statements about HEX were directed at a global audience, not specifically at American investors. Since the alleged misappropriation involved digital wallets and crypto platforms without U.S. ties, the court concluded that U.S. securities regulators were not responsible.

This is an important point: Richard Heart did not win because the evidence favored him, but because the prosecution chose the wrong jurisdiction. Heart nonetheless announced that HEX now has achieved “regulatory clarity” that “few other crypto projects” can claim. However, this assessment is controversial, as the SEC did not drop the case for substantive reasons but procedural ones.

SEC’s Complaint: Misleading Claims and Questionable Promises

The SEC filed its complaint in July 2023, raising serious allegations. At its core was the claim that Richard Heart defrauded investors by selling HEX as a security without proper registration. The agency criticized Heart’s repeated assurances that HEX could offer extraordinary annual returns of about 38 percent—promises that skeptics interpret as classic Ponzi scheme characteristics.

Additionally, the SEC documented that Heart had spent at least $12 million of HEX proceeds on luxury goods. The list ranged from high-end watches and sports cars to a 555-carat diamond ring. In a video, Heart displayed Louis Vuitton suitcases filled with dozens of luxury watches valued at around nine million euros. Such public displays of wealth are part of Heart’s brand image—but the SEC saw them as evidence of illegal gains.

The European Front: Finland Takes Action

While Richard Heart has survived issues with U.S. regulators, new dangers loom in Europe. Finnish authorities have been pressuring Heart since 2024. In September 2024, Finnish investigators announced that Heart had been arrested in absentia—a common procedure in European countries when suspects evade arrest.

Finnish authorities are investigating Heart on two charges: first, tax evasion, and second, assault of a minor. The tax investigation revealed significant discrepancies between Heart’s reported income and estimates by Finnish financial authorities. A police detective explained that, given the “substantial amount of money” and the “long-term and planned nature” of the activities, there were grounds for serious tax evasion. During raids, Finnish police confiscated luxury watches worth millions of euros. Europol has also issued a wanted notice for assault on a 16-year-old victim—reportedly, Heart grabbed the boy by the hair, pulled him down the stairs, and threw him to the ground.

These allegations have placed Heart on the wanted lists of Europol and Interpol. Investigations are ongoing.

The HEX Balance: Token in Stagnation

Industry observers have long argued that HEX exhibits structural features of a Ponzi scheme: 38 percent annual returns, increased profits to attract new users, and the fact that Richard Heart himself holds about 90 percent of all HEX tokens. Despite a loyal social media following, the token appears to have stagnated. The price briefly rose after the court decision, but overall, HEX’s price has hardly moved since Heart’s regulatory troubles. At press time, the token was around $0.002253, with daily trading volumes just over $250,000—indicating low liquidity.

Conclusion: A Win on Shaky Grounds

Richard Heart may have temporarily escaped U.S. regulation, but this was due to lack of jurisdiction rather than evidence. The key question remains: how long can HEX survive under these conditions? The European investigations could quickly turn the tide, especially if Finland or other EU countries reach convictions. And even without criminal consequences, HEX’s market performance suggests investor confidence may already be damaged.