SEC Backs Off: Richard Heart Declares Total Legal Victory in Crypto Lawsuit

The SEC has officially stepped back from its securities fraud case against Richard Schueler, more widely known as Richard Heart, the controversial founder of HEX, PulseChain, and PulseX. 

The move came in an April 21 letter addressed to Judge Carol Bagley Amon, in which the SEC’s attorney, Matthew Gulde, stated unequivocally that the Commission does not intend to refile its previously dismissed complaint.

Rare Win for the Crypto Industry

Judge Amon had thrown out the SEC’s original case in February, ruling that the agency had failed to demonstrate sufficient jurisdiction over Heart’s activities. According to the court, the promotional efforts for the tokens were not specifically directed at U.S. investors—a critical point that undercut the regulator’s legal footing. 

The court did leave the door open for the SEC to amend its complaint, but after two extensions, the agency chose to walk away.

Heart wasted no time in taking a victory lap. In a statement on X, he proclaimed that HEX, PulseChain, and PulseX had “defeated the SEC completely,” achieving a level of regulatory clarity few other crypto projects can claim. 

He went further, suggesting that his case is unique in having “every single claim the SEC brought” dismissed in court, adding that this was a win not only for crypto, but for open-source software and free speech itself.

The Global Hunt That Ended in a Fizzle

The SEC initially brought charges against Heart in July 2023, accusing him of raising over $1 billion through unregistered securities offerings. The case quickly drew international attention—not just for its scale, but because Heart was located in Finland. In December, Interpol even issued a Red Notice for his arrest, with local Finnish authorities also investigating possible tax evasion.

Despite the drama, Heart mounted a strong defense, arguing that the SEC lacked jurisdiction because he wasn’t a U.S. resident. The court agreed, a rare outcome that further weakens the agency’s grip on globally-operated crypto projects.

This isn’t the only crypto case the SEC has quietly backed away from in recent months. Under the Trump administration, regulators appear to be taking a softer stance, leading to a wave of case withdrawals and settlement offers.