Richard Heart's victory in the U.S. regulatory battle and Europe's numerous challenges

The HEX project controlled by Richard Heart has achieved a partial victory in a long-standing lawsuit with the U.S. Securities and Exchange Commission (SEC), but the substance of this victory is far less than the claimed “complete triumph.” Looking back at this landmark case at the end of March 2026, we can clearly see what a dismissal based on jurisdiction rather than substantive allegations can bring to the crypto ecosystem, and how significant the legal risks still facing Richard Heart himself are.

Jurisdiction Becomes Key, Rather Than Substantive Fraud Allegations

On February 28, 2025, Judge Carol Bagley Amon of the U.S. District Court for the Eastern District of New York made a remarkable ruling—dismissing all lawsuits against Richard Heart and his affiliated projects by the SEC. However, this dismissal was not due to the baselessness of the allegations but rather a technical issue: jurisdiction.

The judge ruled that since Richard Heart does not reside in the United States, his promotional statements regarding the price of HEX were aimed at a global audience rather than specific U.S. investors. Judge Amon pointed out that “the alleged fraudulent activities were conducted through digital wallets and cryptocurrency platforms that have no claimed ties to the U.S.” Subsequently, on April 21, the SEC announced it would not appeal this case or submit a revised complaint.

This outcome allowed Richard Heart to claim that he personally, as well as projects like HEX, PulseChain, and PulseX, had “completely triumphed over the SEC and gained regulatory clarity that almost no other cryptocurrency possesses.” But in reality, this reflects more the limitations of cross-border enforcement in cryptocurrency rather than a substantive legal recognition of Richard Heart’s business practices.

European Authorities’ Arrest Warrant: Richard Heart’s Legal Pitfall

While Richard Heart has escaped the regulatory battle in the U.S., he faces far more severe legal threats in Europe. In September 2024, Finnish media reported that this cryptocurrency entrepreneur was detained in absentia on multiple charges.

Finnish police have launched a dual investigation into Richard Heart. The first is tax fraud allegations. According to the Finnish tax authorities, detective Harri Saaristol claims, “Given the substantial amounts involved and the long-term, intentional planning of the activities, there are grounds to suspect serious tax evasion.” Finnish police seized luxury watches worth millions of euros from an apartment in Espoo, near Helsinki.

The second is personal injury allegations. According to a notice from Europol, Richard Heart (listed by his real name, Richard James Schuler) is wanted for violent acts against a 16-year-old minor. The Europol report states: “Schuler physically attacked a 16-year-old victim, including grabbing their hair, dragging them down the stairs, and throwing them to the ground.”

These two allegations have placed Richard Heart on the wanted lists of both Europol and Interpol. The investigation by Finnish authorities is ongoing, meaning Richard Heart cannot safely operate in Europe.

The Identity Mystery of the HEX Project: Can Regulatory Victory Change the Ponzi Scheme Allegations?

Richard Heart prides himself on the regulatory victory regarding HEX, but the industry has long raised sharp questions about the true nature of this project. Many blockchain analysts and commentators believe that HEX exhibits all the characteristics of a modern Ponzi scheme.

First is the promise of extraordinarily high returns. HEX once promised investors an annual percentage yield of up to 38%—a number unheard of in traditional finance. Second is the referral reward mechanism. The project offers higher returns to participants who attract new users, which is a classic pyramid marketing structure. Third, and most critically, is the concentration of tokens. Richard Heart controls approximately 90% of the HEX token supply, giving him almost complete control and profit rights.

From a market performance perspective, the HEX project seems to be gradually losing momentum. Although the price of HEX briefly rose when the news of the SEC’s dismissal of the lawsuit broke, the token has been stagnant since its historical peak. As of the time of writing this report, the trading price of HEX is approximately $0.002253, with the trading volume in the past 24 hours slightly exceeding $250,000, reflecting the market’s lukewarm attitude towards the project.

In contrast, Richard Heart’s display of a luxurious lifestyle while promoting HEX has become the most persuasive “evidence.” According to the SEC’s complaint, he made over $12 million from HEX sales to purchase Rolex watches, sports cars, and a 555-carat diamond ring. He even showcased a suitcase full of Louis Vuitton luggage on social media, claiming a luxury watch collection worth 9 million euros. This display of wealth starkly contrasts with the returns for the project’s investors.

Regulatory Loopholes and Insights for the Crypto Industry

Richard Heart’s technical victory in the U.S. exposes fundamental loopholes in cryptocurrency regulation in the era of globalization. When neither the founders nor the projects are within U.S. borders and transactions are conducted via decentralized platforms, the U.S. regulatory agencies’ enforcement capabilities encounter inherent barriers. While this provides Richard Heart with a breathing space, it also sounds an alarm for other participants in the crypto industry.

On one hand, this indicates that relying solely on a single jurisdiction’s regulation is insufficient to address the risks of global crypto finance. On the other hand, it reminds investors that regulatory difficulties do not equate to project safety. Although Richard Heart has escaped the constraints of U.S. law, he is still wanted by European authorities, underscoring the importance of international law enforcement cooperation.

The current market performance of HEX stands in ironic contrast to the legal dilemmas faced by its founder. Regarding the future of this project, the consensus in the crypto community seems to be: the legal victory Richard Heart won in the U.S. may be far less significant than imagined.