Richard Heart Wins Dismissal of SEC Case, Crypto Community Celebrates

In a significant legal victory, Richard Heart, a serial entrepreneur, author, and philanthropist, has achieved the complete dismissal of all claims brought against him by the U.S. Securities and Exchange Commission (SEC). U.S. District Judge Carol Bagley Amon granted Richard Heart’s motion to dismiss on February 28, 2025, and the SEC announced on April 21, 2025, that it does not intend to file an amended complaint, effectively clearing Heart and his blockchain products—HEX, PulseChain, and PulseX—of all allegations.

The SEC had initially filed suit in July 2023, accusing Heart of raising over $1 billion through unregistered offerings and spending millions on personal luxuries. The SEC also named Heart’s open-source crypto products as codefendants, alleging they were his “alter egos.” However, Judge Amon rejected these arguments, ruling that the SEC lacked jurisdiction and that the offerings were globally accessible but not specifically targeted at the United States. The court also found no substantial connection to domestic securities transactions, as the tokens were not sold on U.S. exchanges and the SEC failed to show any direct marketing to U.S. investors.

The court further dismissed the SEC’s fraud claims, finding that the agency had failed to demonstrate that any investor communications were misleading or that the alleged misuse of funds occurred within U.S. jurisdiction. As a result, all claims against Heart and his blockchain products were dismissed, and the SEC confirmed it does not intend to amend or refile its complaint, formally closing the case with no findings of wrongdoing.

Legal analysts view this ruling as a decisive blow to the SEC’s expansive crypto enforcement strategy, which has been increasingly criticized for regulatory overreach and repeatedly rebuked by courts as arbitrary and capricious. The dismissal reinforces that publishing software, especially open-source blockchain code, is protected speech. This victory is seen as a major win for the cryptocurrency community and advocates of open-source innovation, setting a precedent for future regulatory challenges in the industry.

The legal battle between Richard Heart and the SEC has been closely watched by industry stakeholders, who see it as a test case for how regulators will approach cryptocurrencies and decentralized finance (DeFi) platforms. The dismissal of the case suggests that the SEC may be re-evaluating its stance on certain aspects of cryptocurrency regulation, potentially paving the way for more favorable conditions for innovation in the sector.

Despite this victory, Richard Heart still faces other legal challenges, including tax and assault charges. These ongoing legal issues highlight the global nature of regulatory scrutiny in the cryptocurrency space and the need for a coordinated international approach to regulation. The outcome of these cases will continue to shape the regulatory landscape for cryptocurrencies and DeFi platforms.

The dismissal of the SEC case against Richard Heart is a significant development in the ongoing debate over cryptocurrency regulation. It underscores the need for a balanced approach that fosters innovation while protecting investors and maintaining market integrity. As the cryptocurrency industry continues to evolve, this ruling serves as a reminder of the importance of clear and consistent regulatory frameworks that can adapt to the unique challenges posed by this emerging technology.