TLDR
- Federal court dismisses SEC case against Richard Heart due to jurisdictional limits
- Heart allegedly raised $1 billion through Hex, PulseChain, and PulseX offerings
- Finnish authorities seized $2.6M in luxury watches from Heart’s residence
- Interpol red notice issued seeking Heart’s arrest for tax fraud allegations
- SEC has 20 days to refile complaint addressing jurisdictional issues
Crypto entrepreneur Richard Heart won a round against U.S. regulators Friday when a federal court dismissed the SEC’s case against him. The decision turned on a technical point about jurisdiction rather than the merits of the allegations.
U.S. District Judge Carol Bagley Amon ruled that Heart’s Finland residence placed him beyond the SEC’s reach. The agency failed to prove Heart specifically targeted U.S. investors in his crypto ventures.
The case centered on Heart’s projects Hex, PulseChain, and PulseX. The SEC claimed these offerings raised over $1 billion without proper registration.
Prosecutors painted a picture of deception in their complaint. They alleged Heart used “recycling” transactions to inflate trading volume and create false demand for his tokens.
The SEC also accused Heart of misusing investor funds. Their complaint detailed purchases including a 555-carat diamond and a collection of luxury cars.
Judge Amon focused on Heart’s online presence in her ruling. She found his website didn’t actively engage with U.S. investors through contracts or payment processing.
The court determined Heart’s virtual conference appearances didn’t establish jurisdiction. These events focused on different assets than those named in the complaint.
Heart’s online communications reached a global audience. The judge ruled this broad reach didn’t constitute targeting U.S. investors specifically.
Legal Net Widens
While the SEC regroups, Heart faces mounting pressure abroad. Finnish police seized 20 luxury watches from his Espoo residence in January.
The watch collection, mostly Rolexes, carries a $2.6 million price tag. Local authorities tied the seizure to an ongoing tax evasion investigation.
December brought another blow to Heart’s legal situation. Interpol issued a red notice seeking his arrest on tax fraud and assault accusations.
The red notice asks law enforcement worldwide to locate Heart. However, it functions as a request rather than a binding arrest warrant.
Heart’s legal name, Richard Schueler, appears on the Interpol notice. The organization describes the document as a preliminary step toward possible extradition.
The SEC maintains a 20-day window to revise their complaint. They must demonstrate stronger ties between Heart’s activities and U.S. investors.
Meanwhile, Finnish authorities continue their investigation. The luxury watch seizure suggests they’re building a case around Heart’s assets and tax obligations.
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