I just reviewed a case that shows how strange the crypto world can become when it mixes with regulators. Richard Heart, the founder of HEX who always sparks controversy, achieved something few in the industry manage: pushing back against the U.S. SEC.

The story is long. In July 2023, the SEC filed charges against Heart (whose real name is Richard James Schueler) for securities fraud. He was accused of using HEX to scam investors, along with PulseChain and PulseX. The allegations included false statements about incredible returns and the fact that Heart apparently spent over $12 million of the project's proceeds on luxury items: watches, sports cars, even a 555-carat diamond ring. The guy was never discreet about his wealth.

But here’s where it gets interesting: Richard Heart’s defense focused on a legal detail that turned out to be decisive. His team argued that the SEC lacked jurisdiction because Heart does not live in the United States and the activities did not occur within the country. Judge Carol Bagley Amon agreed. She ruled that although HEX made statements about prices, these were directed at a global audience, not specifically U.S. investors. In February of this year, the charges were dismissed.

Richard Heart celebrated it as a total victory. He announced that HEX, PulseChain, and PulseX had achieved something almost no other crypto project has: U.S. regulatory clarity. Technically, he’s right, although it’s more a matter of jurisdiction than proven innocence.

What hasn’t disappeared are the problems in Europe. Finland wants Heart for serious tax evasion and assault. In 2024, Finnish police issued a warrant for his arrest in absentia after finding that his tax declarations did not match his income. They confiscated millions in luxury watches from a house near Helsinki. Europol also seeks him for assaulting a 16-year-old minor. He is on Europol and Interpol’s most wanted lists.

Now, looking at the project itself: HEX promised annual returns of 38%, had a system to earn more by inviting new users, and Richard Heart controlled around 90% of the tokens. Many industry observers pointed to it as a classic Ponzi scheme. The price rose slightly after the SEC’s dismissal, but overall, the token has hardly moved since the legal issues began. As of the end of this data, it was trading at $0.002253 with just $250,000 in 24-hour volume.

The obvious question is: how long can this last? Richard Heart technically avoided U.S. regulators, but European problems remain. And although he won this legal battle, the market seems to have long since made its own conclusions about HEX.