Here’s how HEX’s Richard Heart beat SEC fraud charges
Richard Heart, the controversial founder of HEX, is claiming total victory over the US SEC after years of court battles.
On April 21, the SEC said that it would not amend and refile its fraud case against the former child actor and crypto evangelist. A court had dismissed the SEC’s fraud charges against Heart on Feb. 28.
Heart announced on X that HEX had obtained a victory very few crypto projects could boast: “Richard Heart, PulseChain, PulseX, and HEX have defeated the SEC completely and have achieved regulatory clarity that nearly no other coins have.”
HEX may be out of hot water with American securities regulators (for now), but Heart still faces charges in Europe, where he is wanted both for alleged tax fraud and for alleged assault on a minor.
SEC claimed Heart used HEX to defraud investors
In July 2023, the SEC filed a complaint against Heart, whose real name is Richard James Schueler, along with HEX, HEX’s layer-1 blockchain project, PulseChain, and the decentralized exchange (DEX) for the PulseChain network, PulseX.
The SEC made a number of allegations, including securities fraud and securities registration violations. It asked the court to bar Heart and his projects from participating in any sort of crypto asset security offering and to give up “all ill-gotten gains received as a result of the violations alleged.”
The complaint noted Heart’s repeated claims that HEX could offer incredible rewards to make investors rich. It also wrote that Heart spent over $12 million of proceeds from HEX offerings on luxury goods such as watches, sports cars and a 555-carat diamond ring.
Indeed, Heart is no stranger to the finer things in life. His celebrity is in part due to his frequent displays of wealth. In one video on X, he flaunted Louis Vuitton cases filled with dozens of luxury watches that he said were worth 9 million euros.
Heart’s court case came down to jurisdiction. Last year, his legal team filed a motion to dismiss the case on the grounds that the SEC failed to show that any activities had occurred within the United States.
The SEC protested the motion. Ultimately, US District Judge Carol Bagley Amon agreed with Heart (the HEX founder does not live in the US), and she ruled that the statements regarding HEX’s price were targeted to a global audience — not US investors.
“The alleged misappropriation occurred through digital wallets and crypto asset platforms, none of which were alleged to have any connection with the United States,” Amon stated.
Finnish authorities want Heart on tax and assault charges
Heart claims that this legal victory provides new ground on which the crypto industry can thrive, creating a legal precedent that supposedly makes HEX safer to work with than any other crypto project.
Heart and HEX may not face American securities regulators, but he is still in hot water with Finnish authorities over alleged tax evasion and assault.
In September 2024, Finnish media wrote that Heart, who was reportedly residing in Helsinki, was remanded into custody in absentia. Finnish investigators, at the request of the country’s tax authorities, were investigating Heart and reportedly found that Heart’s income reporting did not match the tax service’s estimates.
Helsinki police detective Harri Saaristol said, “Based on the very considerable amount of money in question and the long-term and planned nature of the activity, there are grounds to suspect gross tax evasion.”
Related: Interpol issues ‘Red Notice’ for Hex founder Richard Heart
In the course of their investigation, Finnish police seized millions of euros worth of luxury watches from a residence in the city of Espoo near Helsinki.
Europol also stated that Heart (referred to as Schueler in the report) is wanted for assaulting a minor. “Schueler physically assaulted a 16-year-old victim by grabbing their hair, dragging them into the stairwell and knocking them to the ground.”
The allegations together have earned him a profile on Europol and Interpol’s most wanted criminal lists. Investigations are ongoing.
How long can HEX keep it up?
It seems Heart dodged US regulation because the SEC lacked jurisdiction rather than evidence. So, how long can he keep HEX going?
Industry observers and analysts have long claimed that HEX was a new form of Ponzi scheme, namely due to the promises of a whopping 38% annual percentage yield, larger profits for onboarding new users and the fact that Heart owned some 90% of HEX tokens.
Despite a number of committed acolytes on social media, the token seems all but dead. HEX’s price pumped briefly on news of the SEC dismissal. Zooming out, it’s barely moved since Heart’s legal troubles with the SEC began.
At publishing time, HEX’s price is $0.002253; 24-hour transaction volumes barely top $250,000.
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Prediction markets Polymarket and Kalshi view Kevin Hassett, US President Donald Trump’s National Economic Council director, as the favorite to replace Jerome Powell as the next Federal Reserve chair.
The odds of Hassett filling the seat have spiked to 66% on Polymarket and 74% on Kalshi at the time of writing. Hassett is widely viewed as crypto‑friendly thanks to his past role on Coinbase’s advisory council, a disclosed seven‑figure stake in the exchange and his leadership of the White House digital asset working group.
Founder and CEO of Wyoming-based Custodia Bank, and a prominent advocate for crypto-friendly regulations, Caitlin Long, commented on X:
“If this comes true & Hassett does become Fed chairman, anti-#crypto people at the Fed who still hold positions of power will finally be out (well, most of them anyway). BIG changes will be coming to the Fed.”
Related: Crypto-friendly Trump adviser Hassett top pick for Fed chair: Report
Kevin Hassett’s crypto credentials
Hassett is a long-time Republican policy economist who returned to Washington as Trump’s top economic adviser and has now emerged as the market-implied frontrunner to lead the Fed.
His financial disclosure reveals at least a seven‑figure Coinbase stake and compensation for serving on the exchange’s Academic and Regulatory Advisory Council, placing him unusually close to the crypto industry for a potential Fed chair.
Still, crypto has been burned before by reading too much into “crypto‑literate” resumes. Gary Gensler arrived at the Securities and Exchange Commission with MIT blockchain courses under his belt, but went on to preside over a wave of high‑profile enforcement actions, some of which critics branded as “Operation Chokepoint 2.0.”
A Hassett-led Fed might be more open to experimentation and less reflexively hostile to bank‑crypto activity. Still, the institution’s mandate on financial stability means markets should not assume a one‑way bet on deregulation.
Related: Caitlin Long’s crypto bank loses appeal over Fed master account
Supervision pushback inside the Fed
The Hassett odds have jumped just as the Fed’s own approach to bank supervision has received pushback from veterans like Fed Governor Michael Barr, who earned his reputation as one of Operation Chokepoint 2.0’s key architects.
According to Caitlin Long, while he Barr “was Vice Chairman of Supervision & Regulation he did Warren’s bidding,” and he “has made it clear he will oppose changes made by Trump & his appointees.”
On Nov. 18, the Fed released new Supervisory Operating Principles that shift examiners toward a “risk‑first” framework, directing staff to focus on material safety‑and‑soundness risks rather than procedural or documentation issues.
In a speech the same day, Barr warned that narrowing oversight, weakening ratings frameworks and making it harder to issue enforcement actions or matters requiring attention could leave supervisors slower to act on emerging risks, arguing that gutting those tools may repeat pre‑crisis mistakes.
Days later, in Consumer Affairs Letter 25‑1, the Fed clarified that the new Supervisory Operating Principles do not apply to its Consumer Affairs supervision program (an area under Barr’s committee as a governor).
If prediction markets are right and a crypto‑friendly Hassett inherits this landscape, his Fed would not be writing on a blank slate but stepping into an institution already mid‑pivot on how hard (and where) it leans on banks.
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HashKey Holdings, the parent company of one of Hong Kong’s biggest licensed crypto exchanges, moved a step closer to a public listing, according to new filings from the Hong Kong Stock Exchange (HKEX).
On Monday, the HKEX published a 633-page post-hearing information pack for HashKey Holdings. The document was published at the request of The Stock Exchange of Hong Kong Limited and the local financial regulator, the Securities and Futures Commission (SFC).
A post-hearing information pack is only published after HKEX’s listing committee formally clears an applicant at the listing hearing. In other words, without explicitly stating it, this document indicates that HashKey has moved closer to listing on the exchange and is progressing toward its initial public offering (IPO).
At the same time, the document stressed that the deal is not yet finalized. “The listing application referred to in this document has not yet been approved; the HKEX and the SFC may accept, return, or reject the public offering and/or listing application.”
This is standard HKEX disclaimer language and does not contradict HashKey’s approval. Instead, it refers to the listing being dependent on completing the offering documents.
Related: Bitkub exchange eyes Hong Kong IPO as Thai markets slump to 5-year lows: Report
HashKey’s IPO is likely to attract significant attention
The news follows early October reports that HashKey was aiming for an IPO and a listing in Hong Kong this year. At the time, the report was largely based on rumors, citing anonymous sources with purported knowledge of the matter.
HashKey is Hong Kong’s top crypto exchange with a 24-hour volume of nearly $108 million at the time of writing, according to CoinGecko data. The information pack also listed the world’s top bank, JPMorgan, and local financial institutions Guotai Junan International and Haitong International as joint sponsors for the listing.
Interest in the offering is likely high, considering that in mid-February, China-based Gaorong Ventures reportedly invested $30 million in HashKey, granting it unicorn status. The pre-money valuation of the investment was purportedly almost $1.5 billion, but reports cited unidentified sources that could not be independently verified.
The platform is also looking to expand its reach. In early January, its subsidiary HashKey Europe received approval for a virtual asset service provider license from the Central Bank of Ireland.
Related: Crypto bank AMINA gets Hong Kong license to launch institutional trading
China quarantines Hong Kong’s crypto industry
Hong Kong’s growing crypto industry is not well-received by mainland Chinese authorities. Hong Kong began accepting applications from stablecoin issuers in August after introducing a dedicated regulatory framework.
The introduction of the stablecoin licenses in Hong Kong attracted the interest of Chinese technology giants, including Ant Group and JD.com. At the time, reports suggested that HSBC and the Industrial and Commercial Bank of China (ICBC) planned to apply for stablecoin licenses in Hong Kong.
However, Chinese authorities told local firms to stop publishing research or holding seminars related to stablecoins in early August. In September, a now-deleted report by Chinese financial outlet Caixin claimed that mainland Chinese companies operating in Hong Kong may be forced to withdraw from cryptocurrency-related activities.
This was followed by reports in late October that Chinese technology giants, including Ant Group and JD.com, had reportedly suspended plans to issue stablecoins in Hong Kong due to regulatory concerns. On Saturday, the People’s Bank of China — mainland China’s central bank — said after a meeting with 12 other agencies that “virtual currency speculation has resurfaced,” reiterating that “virtual currency-related business activities constitute illegal financial activities,” in line with its 2021 ban on crypto trading and mining.
Magazine: Hong Kong isn’t the loophole Chinese crypto firms think it is
Sony Bank, the online lending subsidiary of Sony Financial Group, is reportedly preparing to launch a stablecoin that will enable payments across the Sony ecosystem in the US.
Sony is planning to issue a US dollar-pegged stablecoin in 2026 and expects it to be used for purchases of PlayStation games, subscriptions and anime content, Nikkei reported on Monday.
Targeting US customers — who make up roughly 30% of Sony Group’s external sales — the stablecoin is expected to work alongside existing payment options such as credit cards, helping reduce fees paid to card networks, the report said.
Sony Bank applied in October for a banking license in the US to establish a stablecoin-focused subsidiary and has partnered with the US stablecoin issuer Bastion. Sony’s venture arm also joined Bastion’s $14.6 million raise, led by Coinbase Ventures.
Sony Bank has been actively venturing into Web3
Sony Bank’s stablecoin push in the US comes amid the company’s active venture into Web3, with the bank establishing a dedicated Web3 subsidiary in June.
“Digital assets utilizing blockchain technology are incorporated into a diverse range of services and business models,” Sony Bank said in a statement in May.
“Financial services, such as wallets, which store NFT (non-fungible tokens) and cryptocurrency assets, and crypto exchange providers are becoming increasingly important,” it added.
The Web3 unit, later named BlockBloom, aims to build an ecosystem that blends fans, artists, NFTs, digital and physical experiences, and both fiat and digital currencies.
Related: Animoca eyes stablecoins, AI, DePIN as it expands focus in 2026: Exec
Sony Bank’s stablecoin initiative follows the recent spin-off of its parent, Sony Financial Group, which was separated from Sony Group and listed on the Tokyo Stock Exchange in September.
The move was intended to decouple the financial arm’s balance sheet and operations from the broader Sony conglomerate, allowing each to sharpen its strategic focus.
Cointelegraph reached out to Sony Bank for comment regarding its potential US stablecoin launch, but had not received a response by the time of publication.
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