The United States Securities and Exchange Commission (SEC) has served its lawsuit to Richard Schueler, also known as Richard Heart, the founder of HEX, at his residence in Helsinki, Finland. This unconventional method became necessary as traditional process servers faced months of unsuccessful attempts to personally contact Heart, prompting the SEC to resort to substitute service.
Evasion Tactics and Allegations from SEC
The SEC filed the lawsuit against Heart in July, accusing him of generating over $1 billion by selling unregistered securities, including HEX, PulseChain (PLS), and PulseX (PSLX). The legal action also alleges that Heart defrauded investors in both the United States and overseas by misusing at least $12 million of their funds to acquire extravagant items such as a “555-carat diamond, expensive watches, and high-end automobiles.”
Read more: $4 Billion Settlement Offered to Resolve Conflict Between Binance and US Government
The Elusive HEX Founder and Online Activity
Despite the SEC’s persistent efforts, process servers were unable to locate Heart for nearly seven weeks before resorting to a substitute service. While his physical whereabouts remained a mystery, Heart continued to remain active online. Since the SEC’s last status report in November, Heart has posted over 40 tweets on Twitter, discussing various crypto-related events, including Binance’s settlement with the Department of Justice, Sam Bankman-Fried’s trial, and updates on Do Kwon.
Read more: XRP Fraud Alert: Delaware Authorities Scrutinize Fake BlackRock Trust Filing
Conclusion
The legal saga surrounding Richard Heart and the SEC’s lawsuit takes an intriguing turn as the regulatory body resorts to alternative methods to serve the legal documents. The allegations against Heart highlight the complexities and challenges in regulating the cryptocurrency space. As the legal proceedings unfold, the crypto community watches closely to understand the implications for HEX and its founder, whose whereabouts remain elusive even in the digital age.
