SEC Loses Case Against Richard Heart, Dismisses All Claims

On April 25th, 2025, in New York, U.S., a significant legal victory was achieved by Richard Heart, a serial entrepreneur, author, and philanthropist. The U.S. District Judge Carol Bagley Amon granted Richard Heart’s motion to dismiss all claims brought against him by the U.S. Securities and Exchange Commission (SEC). The SEC had until April 21st to amend its complaint but ultimately announced 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 filed a lawsuit 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.” Judge Amon rejected the SEC’s arguments, ruling that the agency 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, 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 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. 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. With all claims dismissed, HEX, PulseChain, and PulseX now carry a level of legal clarity few other tokens enjoy. This dismissal reinforces that publishing software, especially open-source blockchain code, is protected speech. From the outset, Heart has always maintained that his products fully comply with the law, and now it’s official. This is a landmark win for cryptocurrency, open-source innovation, and free speech.