SEC Lost Another Critical Case! The Fraud Case Has Officially Been Dropped! Here Are the Details

HEX, the controversial founder of PulseChain and PulseX, Richard Heart, is officially celebrating a definitive legal victory after the U.S. Securities and Exchange Commission dropped the fraud lawsuit against him.

HEX Founder Richard Heart Declares Victory While Dismissing Regulatory Fraud Case

Heart, whose real name is Richard Schueler, stated in a post on the social media platform X that "the SEC lost and crypto won" after the SEC informed a federal court that it did not intend to file a modified complaint following a previous ruling in its favor.

SEC initially filed a lawsuit against Heart in July 2023, alleging that it raised over $1 billion through unregistered securities offerings and misused the proceeds to finance a lavish lifestyle, including the purchase of luxury merchandise.

Heart and PulseChain have also been charged with fraud. However, in February 2025, the U.S. District Court for the Eastern District of New York dismissed the complaint, ruling that the SEC failed to establish a clear jurisdictional connection between Heart's activities and the United States.

The court stated, "In particular, [SEC's] complaint cannot claim that this behavior is directed towards the United States; rather, it only claims that this behavior has emerged abroad through online activities."

The lawsuit is now effectively closed due to the SEC's failure to amend its complaint before the court's deadline of April 21. This dismissal adds to the growing list of enforcement actions related to cryptocurrency that the SEC has abandoned in recent months. It reflects what many perceive as a more conciliatory regulatory stance under President Donald Trump's administration.

Heart did not delay in comparing its situation to other cases that the SEC voluntarily dropped. "The SEC voluntarily withdrew from some other cryptocurrency cases, but this is the only case that the SEC lost and the cryptocurrency won," he said.