The U.S. Securities and Exchange Commission (SEC) has announced that it will not take further legal action against Richard Schueler, widely known as Richard Heart, the founder of Hex, PulseChain, and PulseX.
A letter from SEC attorney Matthew Gulde, dated April 21, was sent to New York District Court Judge Carol Bagley Amon, confirming the regulator’s decision not to file an amended complaint following the court’s earlier dismissal of its case.
The SEC’s initial complaint was dismissed by Judge Amon on February 28 due to a lack of jurisdiction, as the court determined that Heart’s activities were not specifically targeted at investors in the United States.
SEC Opts Not to Refile Case Despite Extension
Despite receiving an extension to refile until April 21, the SEC chose to drop the case altogether.
Heart took to social media to rejoice over the outcome, stating that Hex, PulseChain, PulseX, and himself had “defeated the SEC completely.” He argued that this ruling provided a level of regulatory clarity that has been elusive for many other cryptocurrencies.
Today the SEC notified the court that it “…does not intend to file an amended complaint…” and their deadline to do so has expired. The Court previously dismissed the SEC’s entire case. Richard Heart, PulseChain, PulseX, and HEX have defeated the SEC completely and have… pic.twitter.com/hKtUUQsPHn
— Richard Heart (@RichardHeartWin) April 22, 2025
Heart remarked that, while the SEC had stepped back from other cryptocurrency cases, his situation was distinct because “the SEC lost and crypto won across the board,” leading to all claims being dismissed in court.
He characterized the victory as a triumph for open-source software, innovation in cryptocurrency, and free speech, emphasizing the SEC’s contentious targeting of software code during its legal proceedings.
The SEC initially charged Heart in July 2023, alleging that he was conducting unregistered securities offerings through HEX, PulseChain (PLS), and PulseX (PSLX), claiming he had generated over $1 billion by marketing these tokens as pathways to great wealth.
In response, Heart challenged the SEC’s authority in April 2024, asserting that his non-U.S. residency put him outside the agency’s jurisdiction.
The SEC countered by pointing out that he had engaged in promotional activities within the U.S., including an event held in Las Vegas.
In addition to the SEC’s legal pursuits, Heart faced other challenges when Interpol issued a Red Notice in December 2024 for his arrest in Finland on allegations of tax evasion.
U.S. Court Dismisses SEC Lawsuit
In a recent ruling, a U.S. district court dismissed the SEC lawsuit against Heart, citing the agency’s lack of jurisdiction over his alleged actions.
The court noted that the alleged offenses involved digital wallets and cryptocurrency platforms that had no direct links to the United States.
The SEC had labeled Hex (HEX), PulseChain (PLS), and PulseX (PLSX) as unregistered securities in its claim.
Despite these recent legal victories, however, HEX has faced significant challenges in the market, having plummeted 76% from its peak of $0.031 in December 2024, reflecting a broader decline among altcoins as Bitcoin maintained its dominance.
Additionally, Finnish officials reportedly seized around $2.6 million in luxury watches that he is believed to have abandoned.
Schueler is currently sought in Finland due to allegations of tax evasion and assault, with authorities encountering difficulties in determining his location.
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