HEX Founder Richard Heart Faces Criminal Investigation in Finland

Finnish authorities are investigating Richard Schueler, also known as Richard Heart, the American founder of HEX and PulseChain, for alleged tax evasion and assault.

According to the authorities, Heart, who resides in Helsinki, is suspected of failing to pay hundreds of millions of euros in taxes to Finland.

“Based on the very considerable amount of money in question and the long-term and planned nature of the activity, there are grounds to suspect gross tax evasion,” Helsinki police detective Harri Saaristola told a media outlet.

On September 13, the police issued a remand order for Schueler in absentia, indicating their suspicion of his crimes. The alleged tax evasion reportedly occurred between June 2, 2020, and April 2, 2024. Additionally, authorities are investigating an assault that happened between February 16 and 17, 2021.

Reports indicate that Heart’s income exceeded 15.2 million euros in 2023, although the suspected tax evasion is unrelated to his capital income. Detective Saaristola noted that Heart developed, launched, and marketed cryptocurrencies from Finland and primarily targeted investors abroad.

The Finnish Tax Administration flagged discrepancies between Schueler’s tax returns and the agency’s assessment of his income. Saaristola commented, “It is then a matter of neglecting to report [income] or offering false information.”

U.S. Authorities Involved

The investigation into Richard Heart has garnered attention beyond Finland. U.S. authorities also suspect him of engaging in fraudulent activities. Last year in July, the Securities and Exchange Commission (SEC) charged Heart and three unincorporated entities under his control Hex, PulseChain, and PulseX — with conducting unregistered crypto asset securities offerings that raised over $1 billion from investors.

Eric Werner, Director of the Fort Worth Regional Office, held the view that Heart urged investors to buy crypto asset securities, particularly the ones he failed to register. “He then defrauded those investors by spending some of their crypto assets on exorbitant luxury goods. This action seeks to protect the investing public and hold Heart accountable for his actions,” said Werner.

The SEC also charged Heart and PulseChain for misusing at least $12 million from the offerings to buy luxury items. These included sports cars, watches, and a 555.55-carat black diamond called ‘The Enigma,’ also known as the world’s largest black diamond.

As per Detective Saaristola, the authorities initiated their investigation at the request of the Tax Administration. Saaristola confirmed that the probe is in its early stages and involves cooperation with international law enforcement agencies.

On X, Richard Heart expressed optimism stating that he is doing great. He spoke highly of decentralized systems and said he believed they would never go away.

I'm doing great and will continue to great, no matter how many people attack me or whom they work for. HEX was hated and gate kept all the way to 1,000,000% gains.

You can't stop an idea whose time has come. Truly decentralized systems are here and they're never going away. Ever
— Richard Heart (@RichardHeartWin) September 17, 2024

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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