Digital

SEC Faces Hurdles Serving Lawsuit to HEX Founder Richard Heart Residing in Finland

The United States Securities and Exchange Commission (SEC) is encountering difficulties in officially serving the lawsuit to HEX founder Richard Heart, who is alleged to have committed securities fraud by raising $1 billion through the sale of unregistered securities. In a recent court filing, the SEC revealed its unsuccessful attempts to serve the legal documents to Heart, who is believed to be residing in Finland.

The SEC filed the securities fraud lawsuit against Heart on July 31, accusing him of promoting HEX tokens as high-yield blockchain “certificates of deposit” and promising investors incentives and bonuses. The court filing does not specify the reasons for the challenges in serving the lawsuit but acknowledges that service has not been confirmed through conventional means.

The filing states, “To date, the Commission has not received confirmation of service of process on Defendants in Finland pursuant to the Convention.” In light of the unsuccessful attempts, the SEC plans to explore alternative methods of serving the legal documents. The filing indicates that if service has not been effected within a specified time frame, the SEC will move for alternative service in accordance with Rule 4(f) of the Federal Rules of Civil Procedure.

While the court filing doesn’t detail the alternative methods being considered, it emphasizes the SEC’s determination to pursue the legal process. Notably, alternative service methods, such as delivering legal notices through blockchain and non-fungible tokens (NFTs), have been employed in other cases. In July 2022, a judge in the United Kingdom approved the delivery of legal notices using an NFT by airdropping the lawsuit documents into a set of wallets.

The challenges in serving legal documents to Richard Heart underscore the complexities that can arise in cross-border legal proceedings and the evolving landscape of alternative service methods, including those involving blockchain technology. The SEC’s efforts to serve the lawsuit will likely continue to unfold as the case progresses.

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