Buterin called the case against Ver "absurd" and "politically motivated." Meanwhile, a US court dismissed the SEC’s lawsuit against Hex founder Richard Heart due to jurisdictional issues, though Heart is still wanted by Interpol for tax fraud and assault in Finland. In the UK, Olumide Osunkoya received a four-year prison sentence for operating unregistered crypto ATMs, which was the country's first criminal conviction for this kind of offense.
Vitalik Buterin Supports Roger Ver
Ethereum co-founder Vitalik Buterin recently expressed his support for Roger Ver, the early crypto investor and entrepreneur that is currently entangled in a legal battle with the United States Department of Justice (DOJ) over alleged tax evasion. Ver was arrested in Spain and faces extradition to the US.
Since then, he has attracted a lot of backing from various figures in the crypto community, including Silk Road founder Ross Ulbricht. Buterin reposted Ulbricht’s message calling for the charges against Ver to be dropped and described the case as "absurd" and "politically motivated." He criticized the US tax system, particularly its taxation of citizens regardless of residence and its stringent exit tax, and pointed out that very few other countries impose similar regulations.
Ver’s legal troubles began when the DOJ announced tax evasion charges against him on April 30 of 2024. He was subsequently arrested in Spain and spent several weeks in prison before posting a $163,000 bail on May 17, 2024.
(Source: DOJ)
The bail conditions required him to stay in Spain, surrender his passport, and report to court officials every two days. In a legal filing that was submitted on Dec. 3 of 2024, Ver’s attorneys argued that the case was unconstitutional and sought to have the charges dismissed. They said that the US exit tax law for citizens with more than $2 million in investable assets was vague and violated the Apportionment Clause and the Due Process Clause of the US Constitution.
The case against Ver also reignited debates over US tax policies, particularly as lawmakers and citizens push for comprehensive tax reform. Many in the crypto community see the charges as part of a broader crackdown by the Biden administration on the industry. Critics even accused the DOJ of unfairly targeting Ver because of his outspoken support for cryptocurrency rather than for genuine tax violations. Ver himself held firm that his prosecution is politically motivated, and alleged that the US government is using the case to suppress crypto advocacy.
Judge Dismisses SEC Case Against Richard Heart
A US district court judge also recently dismissed the Securities and Exchange Commission’s (SECs) lawsuit against Hex founder Richard Heart, which accused him of raising more than $1 billion through unregistered crypto offerings and defrauding investors of $12.1 million. Heart’s real name is Richard Schueler. He was also alleged to have spent misappropriated funds on luxury items, including the world’s largest black diamond. However, Judge Carol Bagley Amon ruled that the SEC failed to establish US jurisdiction over Heart’s crypto activities, and stated that his alleged actions were global in scope and not specifically targeted at US investors.
In the court ruling that was issued on Feb. 28, Amon noted that the alleged misappropriation took place through digital wallets and crypto asset platforms that had no connection to the United States. She also stated that if Heart misused investor funds through deceptive mixer transactions, those actions took place entirely outside of US jurisdiction. The tokens at the center of the SEC’s allegations—PulseChain (PLS), PulseX (PLSX), and HEX (HEX)—have seen big price increases since the verdict, rising close to 30%, 60%, and 70%, respectively.
After the ruling, Heart shared his relief at the outcome by stating that winning a securities-related case against the SEC was rare. He pointed out that HEX has been operating flawlessly for over five years and that the decision provided some very welcome relief and opportunity for the broader cryptocurrency industry. Despite the dismissal, Amon granted the SEC an opportunity to amend its complaint and refile the case in 20 days, leaving the possibility of future legal action open.
Beyond the SEC lawsuit, Heart is facing additional legal troubles in Finland. On Sept. 13, 2024, Finnish authorities took him into custody over allegations of tax fraud and assault, but he has since gone missing. On Dec. 22, Interpol issued a Red Notice for his arrest based on these allegations. Although authorities have been unable to locate him, they still managed to seize approximately $2.6 million worth of watches that he is believed to have abandoned.
Heart’s Interpol Red Notice
While he is still out of reach for authorities, Heart is very active on social media, and regularly uses platforms like X and YouTube to promote his cryptos and engage with his followers.
UK Sentences First Illegal Crypto ATM Operator
Roger Ver and Richard Heart are not the only people in the crypto space facing legal issues. Olumide Osunkoya was sentenced to four years in prison for operating an illegal network of cryptocurrency ATMs. This was the UK’s first criminal sentencing for unregistered crypto activity. The Financial Conduct Authority (FCA) announced the ruling on Feb. 28, and believes that the case sends a strong message to those who try to evade regulations and engage in illicit financial activities.
Osunkoya was charged on Sept. 10 for running crypto ATMs without the required registration at 28 locations through his company, GidiPlus Ltd, from December of 2021 to March of 2022. During that period, his ATMs processed transactions totaling 2.6 million British pounds ($3.14 million). To avoid detection, he later transferred the ATMs from GidiPlus and continued operating up to 12 machines under a fake name and company. The FCA stated that he failed to implement measures to prevent money laundering through these machines.
In addition to being the first individual charged in the UK for running an illegal crypto ATM network, Osunkoya pleaded guilty to five charges on Sept. 30. He was also convicted of forgery after creating four fraudulent bank statements to pass a source of wealth check at a crypto exchange. Other charges included using a fake identity to establish a company and possessing criminal property, with authorities seizing 19,540 British pounds ($24,567) in cash obtained through his illegal operations.
During sentencing at Southwark Crown Court, Judge Gregory Perrins condemned Osunkoya’s actions as a deliberate and calculated attempt to defy regulators. He stressed that the case was not a simple regulatory breach but an intentional effort to circumvent financial laws.
This case took place after a 2023 crackdown by the FCA and local police agencies aimed at shutting down illegal crypto ATMs. The regulator reported visiting 38 locations and dismantling 30 machines, which led to a decline in the number of crypto ATMs listed on Coin ATM Radar from 80 in 2022 to zero this year.
