Richard Heart Defeats SEC: Technical Victory or Regulatory Loophole?

Defendant Not Guilty vs Project Decline

Richard Heart, the founder of HEX, has seen a turning point in his years-long lawsuit with the U.S. SEC. On April 21, the SEC announced that it will no longer modify and refile the fraud charges against Heart. On February 28, a U.S. district court dismissed all fraud charges brought by the SEC.

Heart claims on social media that this is a rare victory in the crypto project: “Richard Heart, PulseChain, PulseX, and HEX have completely overcome the SEC, gaining regulatory clarity that almost no other cryptocurrency has.”

The Truth of Winning the Case: Jurisdiction Issues, Not Insufficient Evidence

Key points of the ruling by Judge Carol Bagley Amon in the United States:

• The price promotion of HEX targets a global audience, not just American investors.
• Fraudulent activities are conducted through digital wallets and crypto platforms, with no ties to the United States.
• Heart is not residing in the United States.

Key Point: This is a jurisdictional victory, not an acquittal. The court found that the SEC lacks jurisdiction in the United States, rather than denying the allegations themselves.

There are walls outside the wall: Europe is still chasing

Heart has escaped a calamity in the United States, but faces an even more severe predicament:

Charges from Finnish Authorities:

• Tax fraud: Heart's income declaration does not match the estimates of the tax authorities, involving “a huge amount” of funds.
• In September 2024, Finnish police seized luxury watches worth millions of euros from a residence in the suburbs of Helsinki.
• Accused of assaulting a 16-year-old minor

International Manhunt: Has been placed on the wanted lists of Europol and Interpol.

The Market Reality of HEX

Price Dilemma:

• Current Price: $0.002253
• 24-hour trading volume: only $250,000
• There has been basically no progress since the SEC lawsuit started.

Common Concerns of Investors:

• The 38% annual return commitment has been labeled as a characteristic of a “new type of Ponzi scheme”.
• Heart holds about 90% of the HEX tokens
• The design of earning higher profits by inviting new users has attracted attention.

Observation: Is it a corridor or a dead end?

Heart escapes the SEC using jurisdictional loopholes, but the glow of this victory is overshadowed by the following factors:

1. European Pressure Unresolved: More serious tax and personal injury allegations are brewing.
2. Project Vitality Decline: Stagnant prices and shrinking trading volume indicate that the market has lost trust.
3. Limited Regulatory Precedent: This ruling is based on U.S. jurisdiction and does not signify the endorsement of HEX's business model.

The question is not “Can HEX evade regulation?” but rather “How long can HEX survive?”.