SEC Loses Another Critical Case! Fraud Case Officially Dropped! Here Are the Details

Richard Heart, the controversial founder of HEX, PulseChain, and PulseX, is celebrating a decisive legal victory after the U.S. Securities and Exchange Commission (SEC) officially dropped its fraud case against him. HEX Founder Richard Heart Declares Victory as Regulatory Fraud Case Drops “The SEC lost and crypto won,” Heart, whose real name is Richard Schueler, told social media platform X after the SEC notified a federal court that it did not intend to file an amended complaint following a previous ruling in its favor. The SEC first sued Heart in July 2023, alleging that he raised over $1 billion through unregistered securities offerings and misused the proceeds to fund a lavish lifestyle, including the purchase of luxury goods. Heart and PulseChain were also accused of fraud. However, in February 2025, the U.S. District Court for the Eastern District of New York dismissed the complaint, finding that the SEC failed to establish a clear jurisdictional connection between Heart’s activities and the United States. “Notably, the [SEC’s] Complaint fails to allege that this conduct was directed against the United States; instead, it alleges only that this conduct occurred abroad through online activities,” the court said. The case is now effectively closed, as the SEC failed to amend its complaint before the court-imposed April 21 deadline. The dismissal adds to a growing list of crypto-related enforcement actions the SEC has abandoned in recent months, reflecting what many see as a more conciliatory regulatory stance under President Donald Trump. Heart was quick to compare his case to other cases where the SEC has voluntarily dropped cases. “The SEC has voluntarily dropped some other crypto cases, but this is the only case where the SEC lost and crypto won,” he said. *This is not investment advice. Continue Reading: SEC Loses Another Critical Case! Fraud Case Officially Dropped! Here Are the Details

Source: BitcoinSistemi