Richard Heart Wins Dismissal of SEC Case, Crypto Community Celebrates

In a significant legal victory, Richard Heart, a prominent entrepreneur, author, and philanthropist, has achieved a comprehensive dismissal of all claims brought against him by the U.S. Securities and Exchange Commission (SEC). The ruling, granted by U.S. District Judge Carol Bagley Amon on February 28, 2025, marks a decisive end to a protracted legal battle that began in July 2023. The SEC had accused Heart of raising over $1 billion through unregistered offerings and spending millions on personal luxuries, while also naming his open-source crypto products—HEX, PulseChain, and PulseX—as codefendants, alleging they were Heart’s “alter egos.”

Judge Amon rejected the SEC’s arguments in full, ruling that the agency lacked jurisdiction and that the offerings were globally accessible but not specifically targeted at the United States. The court found no substantial connection to domestic securities transactions, stating that the tokens were not sold on U.S. exchanges and that the SEC failed to show any direct marketing to U.S. investors. Additionally, the court 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 later confirmed it does not intend to amend or refile its complaint, allowing the dismissal to stand and formally closing the case with no findings of wrongdoing.

Legal analysts view the 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. This victory for Heart is seen as a major triumph for the broader cryptocurrency community, underscoring the complexities and challenges of regulating the industry. The dismissal of the SEC case sends a clear message that regulatory bodies must tread carefully when pursuing legal action against innovators in the cryptocurrency space and highlights the importance of due process and the need for regulatory clarity in an industry that is still in its nascent stages.

Heart has always maintained that his products fully comply with the law, and this ruling reinforces that publishing software—especially open-source blockchain code—is protected speech. The dismissal of the SEC case against Heart is a testament to the resilience and determination of innovators in the cryptocurrency industry. It also serves as a reminder that legal battles in this space can be complex and protracted, requiring a deep understanding of both the regulatory landscape and the legal system. As the cryptocurrency industry continues to evolve, it is likely that more legal challenges will arise, and the outcome of such cases will have far-reaching implications for the future of digital currencies and blockchain technology.