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SEC Faces Challenges in Serving Legal Notices to HEX Founder Richard Heart

1 min
Updated by Geraint Price
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In Brief

  • The SEC faces challenges serving a lawsuit to HEX founder Richard Heart, with it being alleged he now resides in Finland.
  • Accused of securities fraud through the sale of unregistered securities, Heart's residence in Finland adds complications.
  • The SEC hints at exploring alternative service methods as it continues its efforts to contact Richard Heart.
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The United States Securities and Exchange Commission (SEC) says it has been unsuccessful in its attempts to serve HEX founder Richard Heart his lawsuit to appear in court.

“To date, the Commission has not received confirmation of service of process on Defendants in Finland pursuant to the Convention,” the filing declared.

SEC Encounters Obstacles in Contacting Richard Heart

In a recent court filing, it was disclosed that the US SEC continues its efforts to officially serve the lawsuit on HEX founder Richard Heart.

The SEC accused Heart of securities fraud on July 31. They alleged that he raised $1 billion through the sale of unregistered securities.

Read more: What Is a Rug Pull? A Guide to the Web3 Scam

However, there are allegations that Heart currently resides in Finland. Furthermore, the SEC is facing difficulties in reaching him for the legal serving process.

“If service has not been effected by that time. The Commission will move for alternative service. In accordance with Rule 4(f) of the Federal Rules of Civil Procedure,” the filing stated.

Exploring Alternatives to Serve Richard Heart

According to the SEC, he promised investors “incentives and bonuses,” marketing the assets as high-yield blockchain “certificates of deposit.” Investors could receive a 38% annual return on Hex tokens staked for a long period.

However, the court filing does not specify the alternative method of communication.

Meanwhile, in recent times, various alternative service methods have been used.

Meanwhile, in July 2022, a judge in the United Kingdom approved the delivery of legal notices through blockchain.

This was through using a non-fungible token (NFT). The delivery method involved airdropping the lawsuit documents, in the form of an NFT, into a set of wallets.

Read more: 15 Most Common Crypto Scams To Look Out For

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
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