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.
Richard Heart, real name Richard James Schueler, is still on Interpol’s wanted list. Source: Interpol
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.
Richard Heart wears four Rolex watches. Source: Luxury Bazaar
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.
HEX’s price spiked in 2021 before nearly falling off by early 2023. Source: CoinMarketCap
Bridget Phillipson has emerged as the early frontrunner in the Labour deputy leadership race as other candidates scramble to catch up ahead of a crunch deadline.
The education secretary had the backing of 44 colleagues as of 6pm on Tuesday, according to the first official tally released by the Parliamentary Labour Party (PLP) since nominations opened.
Former Commons leader Lucy Powell, who was sacked by Sir Keir Starmer in his reshuffle last week, is close behind with 35, followed by backbenchers Bell Ribeiro-Addy with eight, Dame Emily Thornberry with seven and Paula Barker with three.
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Who could replace Angela Rayner?
Housing minister Alison McGovern is currently coming last with two nominations, though sources on her campaign team suggested this did not reflect the true level of support behind her.
Candidates have until 5pm on Thursday to receive the backing of 80 colleagues, meaning there is still plenty left to play for as less than 100 MPs have made their official nominations so far, out of 398.
A fresh tally will be published by the PLP on Wednesday evening, though MPs may publicly reveal who they are backing before then.
Those not on the PLP’s current list include Southport MP Patrick Hurley, who has thrown his weight behind Ms McGovern in a post on X.
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Candidates will have the chance to woo undecided colleagues during a hustings event on Wednesday evening, but there are fears it could descend into chaos as the event will be held online only.
That means hundreds of MPs will have just one hour to quiz the six contenders virtually. It is not clear if or how the event will be moderated.
Image: Bridget Phillipson, Bell Ribeiro-Addy, Lucy Powell, Dame Emily Thornberry, and Paula Barker
Ms Barker, the MP for Liverpool Wavertree, expressed concern about the logistics of the contest.
Asked if she feels confident she can get the numbers, she told Sky News: “I think the very tight timeframe and the fact hustings for MPs are being held online 8pm – 9pm when the majority of colleagues are travelling home undoubtedly compounds the issue.
“Of course, that is an issue to be addressed by whoever wins the race and at this moment in time we are all in the same boat.”
However, a Labour source defended the decision, saying: “There’s frankly no convenient time to do it. Ministers will have busy diaries serving the public during the day… priority has to remain public service.”
Ms Ribeiro-Addy has also criticised the contest’s rules, telling Sky News’ Politics Hub with Sophy Ridge that having just a few days to get 80 nominations “doesn’t feel right”, especially given the winner is “ultimately decided by members”.
Candidates who make it through the first round must go on to win the support of either 5% of Constituency Labour Parties (CLPs) or three organisations affiliated to the party, two of which must be trade unions.
The successful candidates will then appear on the ballot for a vote of all party members and affiliated party supporters, with results declared on 25 October.
The six-week timeline was set by Labour’s ruling National Executive Committee but will be overseen by the party machinery who insist they will work with all candidates to give them a fair hearing.
There are many MPs and ministers who want to see the contest done quickly, to avoid it being a distraction from the government’s priorities.
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Length of race ‘doesn’t feel right’
Candidates make their pitch
The race was triggered by the resignation of former deputy prime minister and housing secretary Angela Rayner after she admitted underpaying stamp duty on a flat she bought in Hove.
Following calls for her replacement to be a Northern woman, all six candidates who entered are female, though Ms Ribeiro-Addy and Dame Emily represent seats in London.
Ms Phillipson and Ms McGovern are seen as candidates that would remain loyal to Number 10, which some MPs want to see to avoid the party becoming more divided. They both honed in on their Northern roots while pitching themselves as the candidate to take on Reform UK when announcing their deputy leadership bids on Tuesday.
Clapham and Brixton Hill MP Ms Ribeiro-Addy is seen as the left-wing candidate, and has the backing of many MPs in the Socialist Campaign Group (SCG) such as Corbynite Richard Burgon.
However, Ms Baker, a former trade union official and Ms Thornberry, chair of the foreign affairs committee, have also vowed to challenge the government on issues like welfare and Gaza.
Manchester Central MP Ms Powell was recently ousted from government and said she decided to stand “after much encouragement” from colleagues.
A Survation survey of 1,308 Labour members who read the LabourList website suggested Ms Phillipson was the most popular choice for the role.
The Protect Progress PAC spent more than $1 million to support James Walkinshaw in a primary for the congressional seat, in a race that could narrow Republicans’ House majority.
Kemi Badenoch has offered to help the government pass legislation to slash the welfare bill – but with conditions attached.
In a speech on Tuesday morning, the Conservative Party leader accused the government of having “totally lost control of spending” and “leading Britain into a deeper and deeper crisis”.
She argued that the only way to fix the issue was to dramatically reduce the welfare budget – and set out to Sky News political correspondent Tamara Cohen her conditions for supporting the government.
Speaking at the Institute of Chartered Accountants, Ms Badenoch said: “We are the only party arguing that government has to live within its means.
“Every single other political party in parliament today, every single other one, wants to increase welfare spending and they voted to do so.
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“They wanted to lift the so-called two child benefit cap. They don’t mind that our sickness benefits bill alone is on course to reach £100bn by 2030.”
The Tory leader said the chancellor will have no option but to raise taxes at the budget in the autumn to fund Labour’s spending plans, and also pay the interest on the vast government debt.
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Is Badenoch right to say UK might need a bailout?
But she claimed that “some in government must know that things need to change”, saying: “You can picture their grim faces, looking at the latest OBR [Office for Budget Responsibility forecast] figures.
“But the truth is they came into government with no real plans for how to save money – only how to spend it. That’s why they are in trouble.”
To that end, she said she is “making the prime minister a serious offer” because “the Conservative Party will always act in the national interest”.
She noted that Sir Keir Starmer had tried to cut welfare spending by targeting benefits paid to disabled people, but had to “gut” the legislation just before the vote and was “humiliated by his own backbenches”.
But she continued: “If he is serious about cutting spending, and really bringing down the welfare bill, we will help him.”
And pointing to Angela Rayner’s resignation, and the ensuing contest for a new deputy Labour leader, Ms Badneoch said: “Whether he wants to admit it or not, Keir Starmer needs our help.”
‘We need to find common ground’
Speaking to Sky News after her speech, the Tory leader said she will only support new government legislation on welfare as long as it brings the total spending down.
“Right now, what I’m offering is for us to sit down together and find common ground,” she told Cohen. “We know that this is difficult, but Conservatives have done this before. We had to find welfare savings and reform welfare in the coalition, [majority] government and after, and we can do it again.”
Image: Labour called the Tory leader ‘delusional’. Pic: PA/House of Commons
She insisted the Tories reduced the welfare bill before the pandemic, when it started going up again.
She said: “We fixed the previous problem. There is now a new problem and what we’re saying is let’s work together to fix it.”
“If we don’t live within our means, we will go bankrupt and our children will have to pay off the debt,” she added.
‘Stop all these distractions’
Ms Badenoch was also challenged on her claim that she was offered a scholarship place at the Stanford Medical School in California, which The Guardian reports has been denied by the admissions staff who were there at the time.
She told Cohen: “They’ve been told something that I didn’t say. I didn’t say I was offered a place – I said I was offered a scholarship, a part scholarship. I hadn’t applied for it.
“But I stand by every single thing that I said. It’s something American universities do. They send out speculative offers.”
Image: Kemi Badenoch was asked about scholarship offer claims. Pic: PA
She called on people to “stop all these distractions about who said what, and who’s up and who is down”, and focus on Angela Rayner’s property taxes, and the economy.
“I tell the truth. I stand by what I said. But right now, the truth is our economy is going in the wrong direction – it’s in free fall, and we have got to fix this.”
A Labour Party spokesperson rejected Ms Badenoch’s offer of help.
“It’s delusional of Kemi Badenoch to think anyone would want to take economic advice from her Conservative Party,” they said. “Their economy-crashing, growth-killing, irresponsible approach to governing left mortgages spiralling and working people worse off.
“The only thing in Britain that needs a bailout is the Conservative Party from its leadership. The Tories haven’t listened, they haven’t learned, and they can’t be trusted.
“Labour is clear that people who can work should work. This Labour government is getting people back into the workplace and out of the doom loop of joblessness that spiralled out of control under the Conservatives.”