SEC Drops Plan to Refile Securities Fraud Case Against Hex Founder Richard Heart

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Amin Ayan

Crypto Journalist

Amin Ayan

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Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has...

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April 22, 2025

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The U.S. Securities and Exchange Commission (SEC) has officially announced it will not pursue further legal action against Richard Schueler, better known as Richard Heart, the founder of Hex, PulseChain, and PulseX.

In a letter dated April 21, SEC attorney Matthew Gulde informed New York District Court Judge Carol Bagley Amon that the regulator would not file an amended complaint following the court’s earlier dismissal of its case.

Judge Amon had thrown out the SEC’s initial complaint on February 28, citing a lack of jurisdiction, as Heart’s activities were deemed not specifically directed at U.S. investors.

SEC Declines to Refile Case Despite Extension Deadline

Although the SEC was granted an extension to refile by April 21, it opted to abandon the case entirely.

Heart celebrated the decision on social media, declaring that Hex, PulseChain, PulseX, and himself had “defeated the SEC completely,” claiming this outcome provided regulatory clarity rarely achieved by other cryptocurrencies.

Heart emphasized that while the SEC has voluntarily withdrawn from other crypto cases, his was unique because “the SEC lost and crypto won across the board,” with all claims dismissed in court.

He framed the victory as a win for open-source software, cryptocurrency innovation, and free speech, noting that the SEC had controversially targeted software code in its lawsuit.

The SEC originally filed charges against Heart in July 2023, accusing him of conducting unregistered securities offerings through HEX, PulseChain (PLS), and PulseX (PSLX).

The regulator alleged that Heart had raised over $1 billion by promoting the tokens as a gateway to immense wealth.

Heart countered in April 2024 by challenging the SEC’s authority, arguing that his non-U.S. residency placed him beyond the regulator’s reach.

The SEC responded by highlighting his promotional activities within the U.S., including an event in Las Vegas.

Meanwhile, Heart faced additional legal pressure when Interpol issued a Red Notice in December 2024, seeking his arrest in Finland on tax evasion suspicions.

U.S. Court Dismisses SEC Lawsuit

Last month, a U.S. district court dismissed the SEC lawsuit against Heart, ruling that the agency lacked jurisdiction over his alleged activities.

The Judge noted that the alleged misconduct occurred through digital wallets and crypto platforms with no clear ties to the United States.

The SEC had classified Hex (HEX), PulseChain (PLS), and PulseX (PLSX) as unregistered securities in its complaint.

Despite the recent legal victories, HEX has struggled in the market, plunging 76% from its December 2024 peak of $0.031, reflecting broader altcoin weakness amid Bitcoin’s dominance.

As reported, Finnish officials did manage to seize approximately $2.6 million worth of luxury watches that he allegedly abandoned.

Schueler is wanted in Finland for alleged tax evasion and assault charges, with authorities struggling to locate his whereabouts.