SEC Drops All Claims Against Richard Heart, Clearing HEX, PulseChain, PulseX

In a significant legal victory, Richard Heart, a serial entrepreneur, author, and philanthropist, has successfully had all claims against him dismissed by the Securities and Exchange Commission (SEC). This outcome marks a complete triumph for Heart in his ongoing legal battle, which has been closely watched by the cryptocurrency community.

The dismissal of the SEC case against Richard Heart is a notable development in the regulatory landscape of the cryptocurrency industry. The SEC had initially brought charges against Heart, alleging violations of securities laws related to his involvement in the Hex project. The dismissal of these claims suggests that the SEC may have struggled to prove its case, or that Heart's legal team was able to effectively challenge the allegations.

U.S. District Judge Carol Bagley Amon granted Richard Heart’s motion to dismiss on February 28, 2025. The SEC had until last Monday, April 21, to amend its complaint and ultimately announced “it does not intend to file an amended complaint in this matter.” These events fully clear Heart and his blockchain products — HEX, PulseChain, and PulseX — of allegations that they constituted unregistered securities and also dismisses claims that Heart misused investor funds.

The implications of this legal victory are far-reaching. For Richard Heart, it represents a vindication of his actions and a validation of his approach to the cryptocurrency market. It also sets a precedent for other entrepreneurs and projects in the industry, demonstrating that it is possible to successfully defend against regulatory actions. The dismissal may also encourage other projects to push back against what they perceive as overreach by regulatory bodies.

The cryptocurrency community has been closely following this case, as it has the potential to shape the future of regulatory oversight in the industry. The outcome of this case could influence how other regulatory bodies approach cryptocurrency projects and entrepreneurs, and could set a precedent for future legal battles. The dismissal of the SEC case against Richard Heart is a significant development in the ongoing debate about the appropriate level of regulation for the cryptocurrency industry.

Legal analysts view the ruling as a decisive blow to the SEC’s expansive crypto enforcement strategy — one increasingly criticized for regulatory overreach and repeatedly rebuked by courts as arbitrary and capricious. With all claims dismissed, HEX, PulseChain, and PulseX now carry a level of legal clarity few other tokens enjoy.

The SEC filed suit in July 2023, accusing Heart of raising more than $1 billion through unregistered offerings and spending millions on personal luxuries. In an unusual legal approach, the SEC also named his open-source crypto products — HEX, PulseChain, and PulseX — as codefendants, alleging they were Heart’s “alter egos.”

Judge Carol Bagley Amon of the U.S. District Court for the Eastern District of New York rejected the SEC’s arguments in full, ruling that the agency lacked jurisdiction and the offerings were globally accessible but not specifically targeted at the United States. The court also 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.

The court further dismissed the SEC’s fraud claims in full, finding 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. 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.

From the outset, Heart has always maintained that his products fully comply with the law. Now it’s official. This is a landmark win for cryptocurrency, open-source innovation, and free speech. “This dismissal reinforces that publishing software — especially open-source blockchain code — is protected speech,” said a U.S.-based attorney who attended the hearings.

The legal victory for Richard Heart is a testament to his resilience and determination in the face of regulatory challenges. It also highlights the importance of having a strong legal team and a well-prepared defense strategy. The dismissal of the SEC case against Heart is a reminder that even in the face of regulatory scrutiny, it is possible to achieve a successful outcome with the right approach. The cryptocurrency community will continue to watch this case closely, as it has the potential to shape the future of the industry for years to come.