This article briefly:
The SEC faces a challenge to its lawsuit against HEX founder Richard Heart, who is now reportedly living in Finland.
Heart was charged with securities fraud by selling unregistered securities, a charge made more complicated by the fact that Heart lived in Finland.
The SEC hinted at exploring alternative methods of service as it continues its efforts to reach Richard Heart.
The Securities and Exchange Commission (SEC) claims that its attempts to bring a lawsuit against HEX founder Richard Heart were unsuccessful.
“To date, the Committee has not received confirmation of service of proceedings under the Convention on the Finnish defendants,” the document states.
SEC encounters roadblock in reaching Richard Heart
The U.S. SEC continues its efforts to formally serve its lawsuit on HEX founder Richard Heart, as revealed in a recent court filing.
On July 31, the SEC charged Heart with securities fraud. They alleged that he raised $1 billion by selling unregistered securities.
However, there are allegations that Heart currently resides in Finland, and the SEC is also facing difficulties in contacting him for legal service of process.
"If service has not been effected by that time, the Commission will proceed with alternative service pursuant to Rule 4(f) of the Federal Rules of Civil Procedure," the document states.
Explore alternatives to serving Richard Heart
According to the SEC, he promised investors “incentives and bonuses” and marketed the assets as high-yield blockchain “certificates of deposit.” Investors who held Hex tokens for the long term could earn an annual return of 38%.
However, court documents did not specify alternative methods of communication.
Meanwhile, in recent years, various alternative service methods have been used.
Meanwhile, in July 2022, a UK judge approved the delivery of legal notices via blockchain.
This was achieved through the use of non-fungible tokens (NFTs). The delivery method was to airdrop the litigation documents into a set of wallets in the form of NFTs.
