On a cold December day in 2024, the digital wanted posters of Europol and Interpol flickered across screens worldwide, bearing the face of Richard James Schueler. The charges were staggering: fraud affecting the financial interests of the European Communities, deliberate tax evasion, and even assault. This wasn’t a petty criminal caught in a local scam, but a self-proclaimed ‘crypto kingpin’ and internet marketer, whose alleged schemes had siphoned over a billion dollars from investors globally, leaving a trail of financial devastation and, for some, shattered dreams.
Who Is Richard James Schueler?
Born on October 9, 1979, in the United States, Richard James Schueler, better known by his public moniker Richard Heart, cultivated an image as a visionary entrepreneur and outspoken personality in the cryptocurrency space. Before his deep dive into digital assets, Schueler’s career path was a winding one, marked by a series of entrepreneurial ventures. These included a car stereo business, a shopping cart platform, and an air conditioner business. Perhaps his most notable pre-crypto success was a mortgage company, which he claimed generated an impressive $60 million annually. He even penned a self-help book, “SciVive,” further cementing his public persona as a thought leader. By 2018, Schueler had fully embraced the crypto boom, founding Hex, followed by PulseChain and PulseX, positioning himself as a disruptor and promising unparalleled returns to his growing legion of followers. He reportedly resides in Helsinki, Finland, a fact that would later become central to his legal troubles.
The Scheme Exposed
The core of the allegations against Schueler centers on a sophisticated, multi-layered fraud scheme involving unregistered crypto asset securities. His projects – Hex, PulseChain, and PulseX – were promoted with aggressive marketing tactics and promises of exorbitant wealth.
The saga began with **Hex**, which Schueler launched in 2018, marketing it as the “first high-yield blockchain certificate of deposit” and touting its ability to make investors “rich.” From December 2019 through November 2020, Schueler and Hex allegedly offered and sold Hex tokens without proper registration, amassing over 2.3 million Ethereum (ETH). A key feature of Hex was its “staking” mechanism, which Schueler claimed would deliver returns as high as 38 percent – figures that raised eyebrows among seasoned financial analysts.
Building on this foundation, between July 2021 and March 2022, Schueler allegedly orchestrated two more unregistered crypto asset security offerings for **PulseChain** and **PulseX**. These ventures purportedly aimed to develop a new crypto asset network (PulseChain) and a trading platform (PulseX). To circumvent securities laws, Schueler reportedly instructed investors to “sacrifice” their crypto assets for PLS and PLSX tokens, rather than making traditional “investments.” This linguistic sleight of hand was, according to regulators, a deliberate attempt to evade regulatory scrutiny.
“The alleged misappropriation of investor funds for luxury goods, coupled with the unregistered offerings, paints a stark picture of a scheme designed to enrich its founder at the expense of unsuspecting investors.”
Beyond the unregistered offerings, the fraud also involves the alleged misappropriation of investor funds, diverted to fuel a lavish lifestyle of luxury purchases for Schueler himself.
Following the Money
The scale of Schueler’s alleged operations is immense. The U.S. Securities and Exchange Commission (SEC) claims that the unregistered offerings of Hex, PulseChain, and PulseX collectively raised more than $1 billion in crypto assets from investors. Of these staggering proceeds, at least $12 million was allegedly siphoned off by Schueler and PulseChain to acquire luxury items, including sports cars, high-end watches, and even a 555-carat black diamond. The financial impact extends beyond investor losses; Finnish authorities assert that Schueler evaded taxes amounting to “hundreds of millions of euros” between June 2020 and April 2024. While the exact number of victims remains unquantified, the offerings targeted retail investors across the U.S. and internationally, suggesting a broad base of individuals affected by these alleged schemes.
The Investigation
The pursuit of Richard James Schueler is a complex, multi-jurisdictional effort involving several key agencies.
- **U.S. Securities and Exchange Commission (SEC):** The SEC initiated its investigation, uncovering the alleged unregistered offerings and the misappropriation of funds. Their team, including Jaime Marinaro and Derek Kleinmann, under the supervision of Sarah S. Mallett, Eric Werner, Jorge G. Tenreiro, and David Hirsch, has been instrumental in building the case against Schueler and his entities. The SEC even extended its reach by sending subpoenas to influencers promoting Hex, PulseChain, and PulseX in November 2022.
- **Finnish Authorities:** Finnish police and tax authorities are conducting a parallel investigation focusing on deliberate tax evasion and an alleged assault. Their inquiry led to a significant seizure of assets: 20 luxury watches, primarily Rolex models, valued at $2.6 million, from a residence in Espoo in January 2025.
- **Europol and Interpol:** The inclusion of Schueler on Europol’s most wanted list in December 2024, followed by an Interpol “red notice” issued by Finland later that month, underscores the international scope of the investigation and the concerted effort to apprehend him. The Interpol notice specifically cited deliberate tax evasion and assault as the grounds for his provisional arrest and potential extradition.
Victims Left Behind
The fallout from Schueler’s alleged schemes has left a trail of financial and personal distress. Retail investors, both in the U.S. and abroad, who poured their crypto assets into Hex, PulseChain, and PulseX, constitute a significant portion of the victims. The SEC’s complaint highlights how Heart allegedly defrauded these investors by diverting their funds for personal extravagant purchases instead of the promised project development. Beyond the individual investors, Finnish tax authorities are also victims of the alleged tax evasion, losing out on hundreds of millions of euros in public funds. Adding a darker dimension to the case is the alleged physical assault of a 16-year-old victim in February 2021, a charge that has led to his inclusion on Interpol’s Red Notice.
Justice & Consequences
Richard James Schueler faces a formidable array of legal challenges across multiple fronts. In the U.S., the SEC filed a complaint in the U.S. District Court for the Eastern District of New York on July 31, 2023. The complaint alleges that Heart, Hex, PulseChain, and PulseX violated the registration provisions of the Securities Act of 1933, and that Heart and PulseChain violated federal securities antifraud provisions. The SEC seeks injunctive relief, disgorgement of ill-gotten gains, prejudgment interest, and penalties. While a U.S. court dismissed the SEC’s fraud charges against Heart on February 28, 2025, citing a lack of jurisdiction, the SEC stated on April 21, 2025, that it would not amend and refile its fraud case, indicating a potential shift in strategy or focus. This does not, however, preclude the registration violation charges.
Concurrently, in Finland, Schueler faces serious charges for deliberate tax evasion, with the undeclared income estimated to be in the hundreds of millions of euros. The alleged assault of a 16-year-old victim in February 2021 further complicates his legal standing. Finnish authorities issued a remand order in September 2024, leading to the Interpol Red Notice in December 2024, which facilitates his provisional arrest for extradition. The seizure of $2.6 million worth of luxury watches from a residence in Espoo by Finnish police serves as a tangible measure of asset recovery underway, aimed at compensating for the alleged tax evasion and other financial damages. The current status of the investigation remains ongoing, with Europol’s profile for Schueler last modified on February 19, 2026, signaling continued active pursuit.
Lessons Learned
The case of Richard James Schueler offers crucial lessons for investors navigating the volatile cryptocurrency market. Several red flags were present from the outset. The most significant was the offering and sale of Hex, PulseChain, and PulseX tokens as crypto asset securities without proper registration with regulatory bodies like the SEC. Any investment opportunity promising exceptionally high returns, such as Schueler’s claims of up to 38 percent through Hex’s “staking,” should be approached with extreme skepticism, as these are often hallmarks of high-risk or fraudulent schemes. The alleged misappropriation of investor funds for personal luxury items, rather than for the stated development of the projects, is a glaring red flag for fraud. Schueler’s reported attempt to circumvent securities laws by rebranding investments as “sacrifices” is another clear indicator of an intent to evade regulatory oversight and manipulate public perception. Furthermore, a lack of transparency, such as operating through unincorporated entities and alleged surreptitious control of tokens, should always raise alarm bells. Industry analysts had also voiced concerns for a long time, with many suggesting that Hex’s structure and promises resembled a Ponzi scheme. Investors should always conduct thorough due diligence, verify regulatory compliance, and be wary of any project that promises guaranteed, outsized returns without clear, verifiable mechanisms. For more information on identifying and avoiding similar schemes, readers can explore other related fraud investigations on our platform.
