Crypto Conundrum: Judge Dismisses SEC Case Against Richard Heart, the Diamond King! 💎

In a curious twist of legal fate, a district court judge has flung aside the US securities regulator’s lawsuit, which accused the illustrious Hex founder, Richard Heart—born Richard Schueler, a name that sounds like a character from a whimsical novel—of conjuring over $1 billion from thin air through unregistered crypto offerings, while simultaneously defrauding investors to the tune of $12.1 million. Quite the magic trick, wouldn’t you say? 🎩✨

Our protagonist, Heart, was also alleged to have indulged in a lavish lifestyle funded by these supposedly pilfered funds, including a rather ostentatious purchase of the world’s largest black diamond. Because, why not? Who needs a modest life when you can have a rock that could double as a small planet?

However, the wise Judge Carol Bagley Amon, in her infinite wisdom, declared that the alleged nefarious deeds could not be adjudicated, as the Securities and Exchange Commission (SEC) failed to prove that the US had jurisdiction over Heart’s crypto escapades—activities that she noted were as global as a well-traveled passport and not specifically aimed at US investors. A rather astute observation, if I may add!

“The alleged misappropriation occurred through digital wallets and crypto asset platforms, none of which were alleged to have any connection with the United States,” Amon stated in her ruling on that fateful day, February 28. It seems the SEC was left holding the bag—or perhaps a rather empty wallet.

“To the extent the Complaint shows that Heart misappropriated investor funds through deceptive mixer transactions, those actions occurred entirely outside of the United States,” she added, as if to sprinkle a bit of salt on the SEC’s wounds. Ouch! 🧂

Meanwhile, the crypto tokens that the SEC claimed were unregistered securities—PulseChain (PLS), PulseX (PLSX), and HEX (HEX)—have seen a meteoric rise of approximately 36%, 67%, and 78%, respectively, since Amon’s verdict. Talk about a comeback! 📈

Heart, in a moment of rare candor, acknowledged the rarity of winning a securities-related court case against the SEC, expressing relief at the flourishing of his beloved Pulse and Hex coins. “HEX has operated flawlessly for over 5 years. Today’s decision in favor of a cryptocurrency founder and his projects over the SEC brings welcome relief and opportunity to all cryptocurrencies,” he proclaimed in a post on X, as if he were the hero of a grand saga.

Yet, the plot thickens! Amon did mention that the SEC could amend the “deficiencies” found in its complaint and refile within the next 20 days (by March 20). So, stay tuned for the sequel! 🎬

In addition to his diamond dalliance—“The Enigma,” a 555-carat black diamond costing a staggering 3.16 million British pounds ($3.97 million)—the SEC also accused Heart of splurging on McLaren and Ferrari sports cars, along with four Rolex watches that cost a jaw-dropping $3.02 million between August 3, 2021, and September 2022. Because who doesn’t need a fleet of luxury cars and a watch collection that could rival a small museum?

Heart, a US citizen believed to be frolicking in Finland, isn’t entirely out of the woods yet. On September 13, 2024, Finnish authorities decided to play a game of hide and seek, remanding him into custody over allegations of tax fraud and assault. However, it seems he’s quite the elusive character, as the authorities have been unable to locate him. Perhaps he’s taken up a new hobby? 🕵️‍♂️

A few months later, on December 22, Interpol issued a Red Notice for Heart, based on the same allegations. Meanwhile, Finnish authorities managed to seize around $2.6 million worth of watches that he is believed to have left behind, as if he were a character in a farcical comedy, leaving his treasures in his wake.

While authorities continue their fruitless search for Heart, he remains as active as ever on

2025-03-01 07:50

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