HX founder Richard Hart was suspected of tax fraud in Finland.

Richard Schuller, also known as Richard Hurt, has been ordered to remain in prison in his absence in Finland. The founder of Hex and Pulse Chain crypto companies is an American resident of Helsinki and is suspected of tax evasion and violence, according to local reports.

In the United States, Heart has filed charges against unregistered securities offerings with the Securities and Exchange Commission. Neither American nor Finnish authorities can find him.

Finnish tax authorities join the SEC by heart

An arrest warrant was issued for Libb on September 13, according to Finnish public broadcaster Yil. Libb is suspected of tax evasion between June 2, 2020 and April 2, 2024, and assault between February 16 and 17, 2021. No details about the alleged assault have been released.

Helsinki police detective Harry Saristola told Yule Heart's income report did not match the tax service's estimate. Saristola said:

Depending on the large amount of money in question and the long-term and planned nature of the activity, there are reasons to suspect tax evasion.

Heart's Finnish tax arrears are suspected to be “several hundred million euros,” and the government has estimated its 2023 revenue at 15.2 million euros ($16.9 million), the publication said. The police investigation began at the request of tax authorities and continues in cooperation with international authorities, Saristola said.

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Controversy from the beginning

The SEC filed a lawsuit alleging that the three coins his company issued in July 2023 — Hex (HEX), PulseChain (PLS), and PulseX (PSLX) — raised more than $1 billion in unregistered securities. Some of the money was used for personal purchases such as a 555-carat diamond, expensive watches and high-end cars.

The SEC attempted to serve a subpoena on Heart in Helsinki, but a third-party Finnish process server could not locate it. Heart managed to maintain a social media presence while eluding Finnish and American authorities. He posts his short interviews on his YouTube channel almost every day.

Heart filed a motion to dismiss the SEC's lawsuit in April, saying there are no US-based “entities, employees, contracts, billings, marketing efforts or travel associated with Mr. Heart.” The SEC said in an August filing that it targeted U.S. investors and actually was in the United States at least once during the period in question. The next hearing in the case will be on October 24.

HEX It has been controversial since its creation in 2019. Heart told Cointelegraph at the time that HEX was “the world’s first blockchain CD [certificate of deposit] Attacking the largest market in the banking ecosystem outside of savings accounts.

As part of a larger investigation, the SEC has questioned influencers who will be promoting HEX, PLS and PSLX in November 2022. A class-action lawsuit is underway against Binance.US and CoinMarketCap for price manipulation involving HEX after an appeals court partially reversed its dismissal of the case in August.

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