Victory: SEC Drops Case Against Richard Heart, Hex Founder Declares Win for Crypto

Big news from the crypto legal front! The U.S. Securities and Exchange Commission (SEC) has decided not to pursue its fraud case against Richard Schueler, better known as Richard Heart, the founder of Hex, PulseChain, and PulseX. This development marks a significant moment for Heart and the projects he founded. For those following the SEC Hex case closely, this represents a clear outcome after months of legal proceedings.

Why the SEC Drops Case Against Richard Heart

The SEC’s decision not to re-file its complaint comes after a federal judge dismissed the original case. In February, New York District Court Judge Carol Bagley Amon ruled that the SEC had not shown it had jurisdiction over Heart’s activities, stating they were not specifically aimed at U.S. investors. The court had given the SEC until April 21 to file an amended complaint, but the regulator informed the court it would not do so.

Here’s a brief timeline of the recent legal steps:

• **July 2023:** SEC files complaint against Richard Heart, alleging unregistered securities offerings for Hex, PulseChain, and PulseX.
• **February 2024:** Judge Amon dismisses the SEC’s complaint, citing lack of jurisdiction over Heart’s activities regarding U.S. investors.
• **April 2024:** SEC notifies the court it will not file an amended complaint, effectively ending this specific case.

Richard Heart Claims Victory for Hex Crypto and More

Following the SEC’s notice, Richard Heart took to social media to declare a complete victory. He stated that Hex, PulseChain, and PulseX have achieved “regulatory clarity that nearly no other coins have.”

Heart highlighted that while the SEC has dropped other crypto cases, his is unique because the SEC lost every single claim in court. He framed the outcome as a win not just for his projects but for open-source software, cryptocurrency, and free speech, arguing that the SEC had attempted to sue software code itself.

Understanding the Projects: Hex, PulseChain, and PulseX

The SEC’s original complaint centered around three tokens associated with Richard Heart:

• **Hex (HEX):** Described as a certificate of deposit on the blockchain, promising high yields.
• **PulseChain (PLS):** A new blockchain network created as a fork of Ethereum, intended to offer lower fees and faster transactions.
• **PulseX (PSLX):** A decentralized exchange (DEX) built on the PulseChain network.

The SEC had alleged that Heart promoted these tokens as ways for investors to achieve “grandiose wealth” and made over $1 billion from the offerings.

Beyond the SEC: Other Legal Challenges

It’s important to note that while the SEC drops case, Richard Heart has faced other legal scrutiny. In December 2024 (based on the provided text’s timeline), Interpol reportedly issued a Red Notice for Heart, seeking his arrest in Finland, where he is suspected of tax evasion. Finnish police have also reportedly seized assets, including watches, from him.

Market performance for Hex crypto has also seen significant fluctuations. According to the text, Hex hit a high of $0.031 in December 2024 but has since dropped significantly, reflecting broader market trends where many altcoins have not kept pace with Bitcoin’s performance.

Implications of the SEC Drops Case Decision

The outcome of the SEC Hex case is significant for several reasons. It raises questions about the SEC’s ability to pursue enforcement actions against individuals and projects based outside the U.S., particularly when activity is not explicitly targeted at American investors. Richard Heart and his supporters view this as a precedent-setting victory against regulatory overreach in the crypto space.

However, the Interpol notice and tax evasion suspicions indicate that Heart may still face legal challenges from other jurisdictions. The market performance of Hex and PulseChain will ultimately depend on various factors beyond this specific SEC case outcome.

Summary: A Win for Richard Heart in Court

In conclusion, the SEC’s decision not to re-file its fraud complaint against Richard Heart marks the end of that particular legal battle. The court’s dismissal based on jurisdiction was a key factor. Richard Heart has declared this a major victory for himself and his projects, including Hex and PulseChain, celebrating it as a win for the broader crypto and open-source communities. While this specific case is closed, other legal issues remain for Heart, and the market will continue to react to broader trends and project developments.