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Interpol's Red Notice against Richard Heart raises questions about crypto security and trust amid fraud allegations and regulatory scrutiny.
Richard Heart, the guy behind Hex, is now on Interpol's wanted list thanks to a Red Notice. This really makes you think about whether crypto founders can be held accountable in a space that’s still largely unregulated.
This Red Notice came at the request of Finnish authorities, and it’s all about tax fraud and assault. It’s a way for law enforcement around the world to find him and arrest him until he can be extradited, or something similar. But don’t get it twisted, it’s not an international arrest warrant.
Earlier this year, he was also on the EU’s Most Wanted List for the same reasons. Apparently, between 2020 and 2024, he committed tax fraud. The Finnish authorities issued a remand order against him back on September 13, 2024.
“To avoid paying tax, Schueler did not comply with a statutory duty related to taxation that is important for assessing tax,” is what they said about him.
The authorities claim that he didn’t file business tax returns for years and didn’t include all his income in his personal tax returns. They allege he made money from business activities that he should’ve reported, and the amount he avoided in taxes is in the hundreds of millions of euros. Oh, and there’s also a separate case where they say he assaulted a minor.
While he hasn’t addressed the Red Notice directly, in a post on X from December 22, he hinted at it. He challenged his ‘haters’ and boasted about his charitable contributions.
“Why settle for being wanted when you can be the most wanted?” he said, referring to his claimed $27 million donations to medical research and other projects.
He seems to think he’s done good things and that those who try to make a difference often get mistreated.
On top of all this, he’s also fighting the SEC in a court case. They sued him back in 2023 for unregistered securities sales and fraudulent activities. The SEC says he raised over a billion dollars in a sale of crypto securities that he didn’t have permission to sell.
They allege he was promoting Hex as a “blockchain certificate of deposit” from December 2019 to November 2020, promising high returns and attracting $678 million in investments. But surprise, the token’s value later plummeted by 98.4% from its peak.
The SEC also claims he raised $354 million for PulseChain, supposedly for development, but used the funds for personal luxuries. He tried to dismiss the case, but the SEC countered, saying he didn’t meet legal standards.
The lack of regulatory oversight in crypto makes this situation worse. The SEC’s charges against Heart show what happens when there’s no regulation. He was charged with selling unregistered securities and misappropriating funds, which erodes trust in the crypto market.
The SEC’s actions highlight the need for better regulations to prevent these kinds of frauds. Without oversight, founders can do whatever they want, which is bad for everyone involved.
The shift from passive to active regulation in the crypto space is definitely a response to cases like Heart's. They show the issues of mismanagement and fraud.
The decentralized nature of crypto and jurisdictional enforcement challenges make it difficult to regulate. International cooperation is key, but also tricky due to different laws and priorities.
Richard Heart’s INTERPOL Red Notice for tax fraud and assault highlights the lack of accountability in crypto. This could make investors wary and demand more transparency.
The Red Notice and the SEC’s ongoing investigation into Heart show that regulatory bodies are paying closer attention to crypto projects. If the court rules against him, it could set a standard that future crypto projects must comply with U.S. regulations.
The Digital Asset Working Group was set up by the Financial Stability Oversight Council to improve coordination among agencies to address risks in the digital asset space. But the report says we need consistent oversight to protect consumers and ensure financial stability, which is key to holding founders accountable.
In summary, without robust regulation, crypto founders can engage in fraud and misappropriation without consequence. Strengthening regulations and international cooperation is vital for greater transparency and accountability in the crypto world.
