Richard Heart, the controversial founder of HEX and PulseChain, faces serious legal challenges in both Finland and the United States, including allegations of tax evasion and assault.
Richard Schueler, better known as Richard Heart, is facing escalating legal troubles in both Finland and the United States. The American founder of the HEX and PulseChain cryptocurrency projects has been remanded into custody in absentia in Finland, where he resides in Helsinki. Finnish authorities are investigating him for suspected tax evasion and assault, marking the latest chapter in his legal saga.
Tax Evasion and Assault Charges
According to a report from Finnish public broadcaster Yle on September 13, 2024, Heart is under investigation for gross tax evasion between June 2020 and April 2024. Finnish police have stated that Heart’s income reporting did not align with the tax service’s estimates. Harri Saaristola, a detective with the Helsinki police, remarked that Heart’s income appears to be vastly understated given the substantial sums involved. The tax authorities suspect that the tax arrears could amount to several hundred million euros.
The authorities also revealed that Heart’s 2023 income was estimated to be €15.2 million ($16.9 million), raising further concerns over his financial activities. The investigation was launched at the request of Finland’s tax authorities and is now being conducted with the help of international law enforcement agencies.
In addition to the tax evasion allegations, Heart is also suspected of assault that allegedly occurred between February 16 and 17, 2021. However, details regarding the assault charge remain vague, and no further information has been made public at this time.
Heart’s Struggles with U.S. Authorities
Back in the United States, Heart is already at the center of a lawsuit from the Securities and Exchange Commission (SEC). In July 2023, the SEC accused him of conducting unregistered securities offerings through the three coins issued by his companies — Hex (HEX), PulseChain (PLS), and PulseX (PSLX). According to the SEC, these offerings raised over $1 billion, much of which was allegedly misused by Heart for personal acquisitions such as a 555-carat diamond, luxury watches, and high-end automobiles.
The SEC attempted to serve Heart a subpoena in Helsinki, but their process server was unable to locate him. Despite being actively sought by both U.S. and Finnish authorities, Heart has maintained a public presence, posting short interviews and commentary on his YouTube channel almost daily. He is currently avoiding direct contact with authorities, though his social media activity suggests he is in Helsinki.
In response to the SEC’s suit, Heart filed a motion to dismiss the case in April, arguing that there were no U.S.-based entities, employees, or operations directly linked to his activities. However, the SEC countered in August, asserting that Heart specifically targeted U.S. investors and had traveled to the United States at least once during the period in question. The next hearing for the case is scheduled for October 24, 2024.
Controversy Surrounding HEX and PulseChain
HEX, which Heart founded in 2019, has been controversial from the start. Heart pitched HEX as the “world’s first blockchain certificate of deposit (CD)” and claimed it would disrupt the banking ecosystem by offering high-yield returns. However, critics have raised concerns about HEX being a potential Ponzi scheme, citing its highly aggressive marketing tactics and questionable business practices. In an interview with Cointelegraph in 2019, Heart defended HEX as a legitimate financial product that would rival traditional savings accounts.
In November 2022, the SEC subpoenaed several influencers who had been promoting HEX, PulseChain, and PulseX as part of a larger investigation. A class-action lawsuit is also underway against Binance.US and CoinMarketCap for alleged price manipulation involving HEX. The court recently reversed a dismissal in the case, allowing the class action to move forward.
Looking Ahead
As the investigation into Heart’s financial activities continues, the SEC and Finnish authorities are working in tandem to resolve the various allegations against him. Heart’s legal troubles seem far from over, and his ability to continue operating his crypto projects is in question as these proceedings unfold. Whether or not he will face charges in Finland or the U.S. could set a significant precedent for the future of crypto regulation and enforcement.
The ongoing developments underscore the complexity and risks associated with cryptocurrency ventures, especially as the industry faces increasing scrutiny from regulators across the globe.
