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
Calls for a meeting with Prime Minister Sir Keir Starmer have been snubbed by No 10, the leader of Plaid Cymru has told Sky News.
Rhun ap Iorwerth, who has served as leader of the Welsh nationalist party since June 2023, is looking likely to become Wales’s first minister next May, but when he asked to meet with Sir Keir after his election last year, he says he was turned down.
Speaking with Sky News’ political correspondent Liz Bates, Mr ap Iorwerth said he had “never” had a conversation with the prime minister but it was “not because I haven’t tried”.
He added: “When I contacted the prime minister to ask for a meeting, after his election last year, I was turned down and it was passed on to the Secretary of State for Wales.
“People can read into that what they want.
“I’ve spoken very openly about wanting to have a constructive relationship with the UK prime minister.”
The former journalist said in his reporting days he had not interviewed Sir Keir and now, in politics, their “paths had never crossed” but he said he felt it was “important”.
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“I have certainly asked if we could meet. And that is certainly something that I would still love to happen,” he said.
Mr ap Iorwerth said a conversation would be key because if he became Welsh first minister, there would be “serious negotiations on serious issues around funding for Wales – on investing in infrastructure in Wales, on the future of how we’re able to influence and use our natural resources in Wales”.
“So I want to have that constructive relationship,” he said.
In an apparent nod to current Labour first minister Eluned Morgan, Mr ap Iorwerth said Sir Keir would be in “no doubt” that his loyalty “would always be to the people of Wales”.
He said: “I won’t be pulling my punches in order to save the Labour Party embarrassment.
“I’ll be really laying out what’s in the interest of Wales. And that’s, I think, a fundamentally different relationship. But it has to be, and I want it to be, a constructive one.”
The next Senedd election is May 2026, when voters in Wales will elect 96 members for the first time – an increase of more than 50% from the current 60.
Welsh politics has traditionally been dominated by Labour.
Labour’s grip on Wales sliding?
Welsh Labour MPs have been the largest group sent to Westminster in every general election since 1922 – and the party has been in government in the country for more than a quarter of a century.
But if the polls are accurate, Labour’s long-standing grip on politics in Wales is fading.
Plaid Cymru and Reform UK are running almost neck and neck, while Labour trails significantly.
Politics has always been unforgiving, but never more so than now.
So, speaking to the man who is on the brink of power in Wales, raises the question of whether he is really ready for what’s he’s taking on.
Plaid Cymru leader Rhun ap Iorwerth is a former journalist so he knows how to present himself, but much bigger challenges are coming, and fast.
At next May’s Senedd elections, he is narrowly on course to become first minister, according to current polls.
Image: Mr ap Iorwerth visits local businesses on Ystrad Mynach high street. Pic: PA
But before that he faces the same battle as leaders across the UK – how to beat Reform, who are running his party very close.
It’s not clear he has a different strategy to any other politician, as he condemns their politics as divisive and tries instead to present a positive vision of unity and more public spending.
Maybe he has a better chance than most though as he can at least point the finger of blame firmly elsewhere – Westminster.
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That leads to his second big problem of how to get anything from a Labour prime minister when you lead an opposition party.
In his conference speech he criticised Welsh Labour leader Eluned Morgan for being unable to influence Sir Keir Starmer.
But Mr ap Iorwerth later revealed to Sky News that he’s never even spoken to the prime minister, and when a meeting was requested he was offered the Secretary of State for Wales instead.
If he does become first minister he will have to walk the difficult line of fostering a privately productive relationship while still criticising in public.
Looming over all of this is the question of Welsh independence.
It has been the party’s driving force for a century but it’s now been shelved for at least one term in office.
Mr ap Iorwerth says it’s because they need to lay the groundwork, have a consultation on the process and bring the public with them.
The truth is that the Welsh economy is so reliant on the rest of the UK that separation would be difficult, to say the least.
Figuring out how to keep pursuing their core purpose while acknowledging that reality could become corrosive.
Having said all that, he has a sense of momentum and purpose that many other politicians are lacking, driven by a strong sense of Welsh identity.
If he does get over the line in May, it will be this feeling that propels him, and he will need to draw on it again and again as he faces the tough times ahead.