Richard Heart triumphs in court as the SEC drops the case against HEX and PulseChain

The prolonged legal battle between Richard Heart and the U.S. Securities and Exchange Commission (SEC) has come to an end. The regulator has decided not to pursue further legal action against the crypto entrepreneur and his three projects—HEX, PulseChain, and PulseX. This decision marks the conclusion of a two-year court case that shook the cryptocurrency market and raised significant questions about industry regulation.

The Two-Year Lawsuit Finally Ends

The conflict between the SEC and Richard Heart dates back to July 2023, when the regulator filed ambitious charges against the entrepreneur. During this period, much was discussed about the future of cryptocurrency regulation, and Heart’s case became a symbol of the ongoing battle between traditional financial authorities and the innovative blockchain sector.

The turning point came on February 28, 2025, when Judge Carol Bagley Amon of the U.S. District Court for the Eastern District of New York issued a ruling dismissing the SEC’s original complaint. Although the court granted the regulator the opportunity to file an amended complaint, the deadline was set for March 20, 2025. It was later extended to April 21, 2025. Ultimately, as indicated in court documents, the SEC has decided to withdraw from pursuing the case altogether.

What Were the Original SEC Allegations?

The SEC accused Richard Heart of selling unregistered securities through three crypto ventures. According to the regulator’s documents, Heart raised over a billion dollars from investors. Additionally, authorities claimed that he misappropriated at least $12 million.

The allegations also included improper use of funds. The SEC stated that the entrepreneur used the money to purchase luxury items such as sports cars, watches, and a rare black diamond weighing 555 carats, known as “The Riddle.” These details attracted significant media and public attention.

Regarding specific projects, the SEC maintained that HEX was promoted as a high-yield “blockchain deposit certificate” with staking options generating returns of up to 38%. The regulators also argued that Richard Heart was the main initiator of unregistered token sales in the PulseChain and PulseX projects.

Court Proceedings and Final Withdrawal Decision

The legal process involved several stages. After the ruling on February 28, 2025, which dismissed the SEC’s original complaint, the court allowed the regulator to file an amended complaint. However, the initial deadline of March 20 was extended to April 21, 2025, upon SEC’s request. In a court filing during this period, the SEC stated that it “does not intend to file an amended complaint.”

This decision is considered a breakthrough in the crypto industry. Richard Heart immediately responded to the news by declaring a full victory. He emphasized that the ruling provides regulatory clarity for HEX, PulseChain, and PulseX—something rarely seen among crypto projects. According to Heart, his ventures can now develop without the legal risks that have loomed over them for the past two years.

Richard Heart’s Statement on the Victory

On X (formerly Twitter), Richard Heart commented on the court’s decision: “The court previously dismissed the entire SEC case. Richard Heart, PulseChain, PulseX, and HEX completely defeated the SEC across the board.” The entrepreneur highlighted that this is the only case where the involved crypto projects achieved such a full victory, with every single claim by the SEC being rejected.

He also argued that this victory is fundamental for the blockchain industry because the SEC essentially sued the software code itself, yet failed to sustain the case in court. Heart’s comments suggested that the decision was meant to restore confidence in the cryptocurrency sector.

HEX Shows Growth Despite Years of Legal Challenges

Although the court battle ended in victory for Richard Heart, his crypto projects faced difficult periods throughout the proceedings. HEX, the most well-known token associated with Heart, experienced a dramatic decline in value.

The token reached its all-time high of $0.5108 before the SEC’s allegations. Since then, HEX has fallen by 99.6%, currently valued at around 0.2% of its peak. However, recent months have seen some price recovery.

Data from CoinGecko shows that HEX increased by 14% in the 24 hours following the case’s resolution. Over a weekly period, HEX rose by 50%, and over the past year, it gained 30%. These increases are seen as the market’s response to the legal outcome and the absence of further legal threats to the project.

Market analysts suggest that removing legal uncertainty could open new development opportunities for Heart’s projects. Many believe that the case’s resolution has restored investor confidence, which had been shaken over the past two years.