The U.S. Securities and Exchange Commission (SEC) has formally notified a federal court that it will not pursue an amended complaint against Richard Schueler—better known as Richard Heart—the controversial founder behind cryptocurrency projects HEX, PulseChain, and PulseX. The decision follows a significant legal setback for the agency earlier this year.
The case, originally filed in July 2023, accused Heart and his affiliated entities of raising over $1 billion through unregistered securities offerings. Additional fraud charges alleged that funds were diverted to finance a lavish lifestyle, including the purchase of high-end luxury items. However, in February, the District Court for the Eastern District of New York dismissed the lawsuit, finding that the SEC had not adequately demonstrated that Heart’s activities were directed at or conducted within the United States.
“The SEC’s complaint failed to establish jurisdiction,” the court noted in its ruling, emphasizing that the agency merely cited online conduct originating abroad, without evidence of direct targeting of U.S. investors.
Despite the court granting the SEC an extension until April 21 to amend its complaint, the agency missed the deadline and has now confirmed it will not refile. The decision marks a rare instance of a comprehensive legal victory for a crypto founder in a regulatory environment that has often seen digital asset firms settle or lose high-stakes cases.
“This is the only case where the SEC lost and crypto won across the board,” Heart declared on social platform X.
The SEC’s retreat aligns with a broader trend of softened enforcement against the crypto industry, reflecting what some see as a strategic pivot under political pressure, particularly following policy signals from former President Donald Trump, who has advocated for a more crypto-friendly regulatory stance.
Legal Challenges Abroad
While Heart has emerged victorious in U.S. court, his legal troubles are far from over. In December 2024, Interpol issued a red notice at the request of Finnish authorities, citing charges of fraud and tax evasion. He is currently listed on Europol’s “Europe’s Most Wanted” list, with his case described as part of an ongoing investigation. The last update to his profile was posted on December 18, 2024.
Market Response
Despite the legal turbulence, the market response has been cautiously optimistic. The price of HEX, the token associated with Heart’s ecosystem, has seen a modest uptick. As of the latest data from CoinMarketCap, HEX was trading at $0.007518, up 0.35% in the past 24 hours and showing a 27% increase over the last week.
