Here’s how HEX’s Richard Heart beat SEC fraud charges

Published

3 weeks ago

April 23, 2025

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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.”

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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Politics

Coinbase refuses $20M ransom after support agent data breach

Published

58 mins ago

May 15, 2025

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Coinbase refuses M ransom after support agent data breach

Coinbase, the world’s third-largest cryptocurrency exchange, was hit by a $20 million extortion attempt after cybercriminals recruited overseas support agents to leak user data, the company said.

According to a May 15 blog post, Coinbase said a group of external actors bribed and coordinated with several customer support contractors to access internal systems and steal limited user account data.

“These insiders abused their access to customer support systems to steal the account data for a small subset of customers,” Coinbase said, adding that no passwords, private keys, funds or Coinbase Prime accounts were affected.

Less than 1% of Coinbase’s monthly transacting users’ data was affected by the attack, the company said.

Coinbase refuses $20M ransom after support agent data breach — *Source:* *Coinbase*

After stealing the data, the attackers attempted to extort $20 million from Coinbase in exchange for not disclosing the breach. Coinbase refused the demand.

Instead, the company announced it was offering a $20 million reward for information leading to the arrest and conviction of those responsible for the scheme.

Scammers often masquerade as recognizable brands to inspire a false sense of trust in their victims.

In 2024, Coinbase was the most impersonated cryptocurrency brand by scammers.

This is a developing story, and further information will be added as it becomes available.

Politics

Sir Keir Starmer in talks with ‘a number of countries’ over return hubs for failed asylum seekers

Published

2 hours ago

May 15, 2025

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Sir Keir Starmer in talks with 'a number of countries' over return hubs for failed asylum seekers

The UK is in talks with “a number of countries” about sending failed asylum seekers to return hubs in third countries, Sir Keir Starmer has said.

The prime minister confirmed the plan at a press conference alongside his Albanian counterpart Edi Rama in the country’s capital, Tirana.

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Sir Keir described the hubs as a “really important innovation” that complements other measures the government is taking to crack down on criminal smuggling gangs.

“We are in talks with a number of countries about return hubs,” he said.

“At the appropriate time, I’ll be able to give you further details in relation to it.”

Sir Keir did not say which countries he is in talks with, but Mr Rama suggested he is not open to hosting UK detention centres as Albania has already signed a deal for Italy to build them there.

“We have been asked by several countries if we were open to it, and we said no, because we are loyal to the marriage with Italy and the rest is just love,” he said.

Earlier, Sir Keir told GB News that the hubs would be for people whose asylum applications have failed and they have exhausted all avenues to appeal.

This is a different concept to the Tories’ failed Rwanda scheme which Sir Keir scrapped almost immediately after winning the general election.

The Rwanda plan involved deporting all people who arrived in the UK by unauthorised means to the east African country, where their asylum claims would be processed for them to settle there, not in Britain.

Return hubs would be an offshore location to hold migrants set to be returned to their home countries and who have no chance of remaining in the UK.

The Rwanda scheme failed to get off the ground before the Tories lost the election, despite millions spent, after it was repeatedly challenged in the courts.

Shadow home office minister Chris Philp today insisted it would have acted as a deterrent, whereas the return hubs are a “con on the British public”.

He said: “It’s better than nothing but it won’t work because most of the people crossing the Channel are of nationalities where they will get their asylum claims granted.

“It’s a con on the British public for Keir Starmer to claim these return hubs will have any practical effect.”

Mr Philp also called it a “slap in the face” and “humiliation” for the prime minister that Albania has already rejected the idea, saying he’d travelled all that way to “announce a few tweaks” to a cooperation deal that was put in place by the Conservatives.

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Politics

Ukraine strategic Bitcoin reserve bill reportedly in final stages

Published

3 hours ago

May 15, 2025

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Ukraine strategic Bitcoin reserve bill reportedly in final stages

Ukraine is reportedly moving closer to adopting Bitcoin as a national reserve asset, a move that could bolster its financial resilience amid the ongoing war with Russia.

Lawmakers are reportedly working on a Bitcoin (BTC) national reserve proposal, with a draft bill in its final stages, according to Yaroslav Zhelezniak, a member of parliament who confirmed the plan to local media outlet Incrypted.

The proposal was announced during the CRYPTO 2025 conference in Kyiv on Feb. 6. “We will soon submit a draft law from the industry allowing the creation of crypto reserves,” Zhelezniak said.

Cointelegraph reached out to Zhelezniak for comment on the bill’s status but had not received a response by publication.

Bitcoin has gained international attention as a national reserve asset since the election of US President Donald Trump in November 2024. On March 7, Trump signed an executive order to establish a national Bitcoin reserve seeded with BTC confiscated from criminal cases.

A month later, Swedish MP Rickard Nordin issued an open letter urging Finance Minister Elisabeth Svantesson to consider adopting Bitcoin as a national reserve asset, citing its growing recognition as a “hedge against inflation,” Cointelegraph reported on April 11.

Legal challenges may delay adoption

While Ukraine’s push for a national Bitcoin reserve marks a potentially historic shift in crypto policy, it may require “significant legal change,” according to Kyrylo Khomiakov, regional head of CEE, Central Asia and Africa, at crypto exchange Binance.

“We commend Ukraine’s ambition to establish a strategic crypto reserve,” he told Cointelegraph. “Implementing such a reserve would necessitate significant legal changes, indicating that this process will not be swift.”

He added, “Another positive aspect is that this initiative will likely lead to greater regulatory clarity in Ukraine, as the government will need to articulate its stance more clearly.”

Ukraine was reportedly planning to legalize cryptocurrencies in early 2025 with the finalization of a draft bill in coordination with the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF), according to Daniil Getmantsev, head of the tax committee of the Verkhovna Rada.

On April 8, Ukraine’s financial regulator proposed taxing certain crypto transactions as personal income with a rate of up to 23%, excluding crypto-to-crypto transactions and stablecoins.

Not all voices in Ukraine’s crypto industry are optimistic about the timing of the proposal.

”The country is broke. More than 50% of the budget is in grants and loans from the European Union,” said Michael Chobanian, the founder of Ukraine-based Kuna exchange.

“The population is decreasing at the fastest rate in the world. Men are kidnapped and sent to the army against their will. What kind of BTC reserves are we talking about here? This is done only to divert your attention,” Chobanian claimed.