In a notable development, the U.S. Securities and Exchange Commission (SEC) confirmed it will not refile charges against Richard Schueler, commonly known as Richard Heart, the creator of Hex, PulseChain, and PulseX.
In a letter dispatched to New York District Court Judge Carol Bagley Amon on April 21, SEC attorney Matthew Gulde stated that the agency would not submit an amended complaint after the court previously dismissed the case.
Judge Amon had dismissed the SEC's initial complaint on February 28, citing a lack of jurisdiction, as Heart’s activities were deemed not sufficiently directed at American investors.
SEC Chooses Not to Pursue Further Action
Despite being granted a deadline extension to refile the case by April 21, the SEC opted to abandon the lawsuit entirely.
Heart took to social media to express his triumph over the decision, proclaiming that he, along with Hex, PulseChain, and PulseX, had “defeated the SEC completely.” He articulated that this outcome provided a measure of regulatory clarity that is rarely seen in the cryptocurrency arena.
Heart emphasized that, unlike other cases where the SEC has withdrawn voluntarily, his situation was distinctive as it showcased a definitive win for the cryptocurrency community, with all claims against him dismissed in court.
He framed this victory as a triumph for open-source software and cryptocurrency innovation, highlighting concerns that the SEC controversially targeted software code in its lawsuit.
The SEC initially lodged complaints against Heart in July 2023, accusing him of engaging in unregistered securities offerings through HEX, PulseChain (PLS), and PulseX (PSLX). According to the regulator, Heart had amassed over $1 billion by marketing these tokens as a path to extraordinary wealth.
In April 2024, Heart responded by disputing the SEC’s jurisdiction, arguing that his residency outside the U.S. placed him beyond the regulatory scope. The SEC countered this by pointing to his promotional endeavors within the U.S., including a particular event held in Las Vegas.
Adding to Heart’s legal challenges, Interpol issued a Red Notice in December 2024, seeking his arrest in Finland due to allegations of tax evasion.
U.S. Court Dismisses SEC’s Case
Recently, a U.S. district court dismissed the SEC’s lawsuit against Heart, ruling that the agency did not possess jurisdiction over his purported activities. The judge remarked that the supposed misconduct took place through digital wallets and cryptocurrency platforms, which showed no clear connections to the United States.
The SEC had categorized Hex (HEX), PulseChain (PLS), and PulseX (PLSX) as unregistered securities in its complaint.
Despite this recent legal success, HEX has faced difficulties in the market, having declined 76% from its December 2024 peak of $0.031, influenced by a general downturn in altcoin performance amid Bitcoin's dominance.
Furthermore, Finnish authorities recently seized approximately $2.6 million worth of luxury watches that Heart allegedly left behind. He is wanted in Finland for purported tax evasion and assault charges, and authorities have been struggling to determine his current location.
