U.S. SEC Drops Case Against HEX Founder Richard Heart
The SEC decided not to refile its complaint against HEX founder Richard Heart. A federal court previously dismissed the case due to a lack of U.S. jurisdiction.
The U.S. Securities and Exchange Commission in the Eastern District of New York has notified the court that it will not file an amended complaint against Richard Schueler (known as Richard Heart), founder of the cryptocurrency projects HEX, PulseChain, and PulseX.
In February 2024, the court dismissed the initial complaint, citing a lack of clear evidence establishing U.S. jurisdiction. The alleged activities took place abroad and were conducted through online platforms.
Although the court had granted an extension, the SEC allowed the April 21 deadline to pass without refiling.
Case Background and Richard Heart’s Response
In July 2023, the U.S. SEC filed a lawsuit against Richard Heart and several affiliated entities. The complaint alleged that the group raised over $1 billion through unregistered securities offerings and misused investor funds to purchase luxury items.
Related: Hex Founder’s Luxury Watch Collection Seized
In February, U.S. District Judge Carol Bagley Amon ruled that the SEC’s original complaint lacked specific evidence that Richard Heart had deliberately targeted U.S. investors. Moreover, the court noted that his activities appeared to be based abroad.
The SEC was granted leave to amend the complaint by March 20, a deadline that was later extended to April 21. However, the regulator ultimately chose not to file any additional documents, effectively closing the case.
The HEX founder responded immediately:
This is a victory for open-source software, cryptocurrency, and free speech. The SEC actually sued software code itself in this case, claiming it could be an alter ego of a person,
Richard Heart posted on Х.
Investigation in Europe
Despite the dismissal in the U.S., Richard Heart remains under investigation by European authorities. In December 2024, Interpol issued a red notice for Heart at the request of Finnish authorities as part of a fraud and tax evasion probe.
He is also listed among Europol’s most wanted, with the case status marked as “Ongoing” (last updated December 18, 2024).
The situation remains uncertain, and the crypto community is watching closely as the case moves through European courts.
Read more: US SEC Charges PGI Global Founder in $198M Crypto Ponzi Scheme
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